Question

During May. Joliet Fabrics Corporation manufactured 500 units of a special multilayer fabric with the trade name Styler. The following information from the Stylex production department also pertains to Me Problem 10-35 Direct Material and Direct Labor Valances (LO 10-1, 10-31 3. Direct de la Duchas price variance 5540U Dred material purchased 18.000 yards #5138 peyard Dired materal used 9.500 yards at 51.33 per yerd Dired labor 2,100 hours 2 59.15 per hour - 52430 13.110 18215 The standard prime costs for one unit of Styles are as follows: Dreamena 20 yards at 51 35 per yard - Director 4 hours at $9.00 per hour Total Standard te cost per un doubt Required: Compute the following variances for the month of May. indicating whether each variance is favorable or unfavorable 1. Direct-material price variance. 2. Direct-material quantity variance. 3. Direct-material purchase price variance. 4. Direct-labor rate variance. 5. Direct-labor efficiency variance.

Answer 1

1. SQSP = Standard Cost of Standard Material

2. AQSP = Standard cost of Actual Material

3. AQAP = Actual Cost of Actual Material

Where

SQ = Standard Quantity for Actual Production or output

SP = Standard Price

AQ = Actual Quantity of Materials Consumed

AP = Actual Price

Material price variance =SQSP - AQAP

                                       =500*20*1.35 - 9500*1.38

                        =13,500 - 13,110

           = 390(F)

Material Purchase Price

Variance = AQSP - AQAP

                                  =9,500*1.35 - 9,500*1.38

                      =12,825 - 13,110

         =285 (A)

Material quantity variance= SQSP - AQSP

                                   =500*20*1.35 - 9500*1.35

                        =13,500- 22,825

         =675 (F)

1.SRSH = Standard Cost of Standard Labour

2. SRAH = Standard Cost of Actual Labour

3. ARAH = Actual Cost of Labour

Where,

SR = Standard Rate of Labour Per Hour

SH = Standard Hours for Actual Production or output

AH = Actual Hours

AR = Actual Rate of Labour per Hour

Labour Rate Variance =SRAH - ARAH

                               =9*2100 - 9.15*2100

                     =18,900 -19,215

        =315 (A)

Labour efficiency variance= SRSH - SRAH

                            =9*4*500 - 9*2100

                         =18,000 - 18,900

         =900(A)

Answer 2

The current response is incorrect (math is right, equations are wrong).  It's misuing material used with martial purchased.  Be sure to check your formuals