Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 13 Aug 2017 My Price 7.00

Camisa Company

Camisa Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established:
Direct materials (2.5 lbs. @ $0.90) $2.25
Direct labor (0.75 hr. @ $7.00) 5.25
Standard prime cost $7.50
During the year, 53,000 pounds of material were purchased and used for the changeover activity. There were 20,000 batches produced, with the following actual prime costs:
Direct materials $42,000
Direct labor 102,000 (for 14,900 hrs.)

Required:
Compute the materials and labor variances associated with the changeover activity, labeling each variance as favorable or unfavorable.

Answers

Maurice Tutor
(5)
Status NEW Posted 13 Aug 2017 09:08 PM My Price 7.00

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