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Adventure Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard...

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Accounting

Adventure Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $42, consisting of 4 yards of fabric at $10.50 per yard. The standards call for 2 hours of assembly at $20 per hour. The following data were recorded for October, the first month of operations:

Fabric Purchased 9,000 yards x $10.00 per yard
Fabric used in production of 1,700 tents 7,000 yards
Direct Labor Used 3,600 hours x $21.50 per hour

(a) Compute all standard cost variances for materials and labor.

Materials price variance (usage basis) $3,500 (favorable)
Materials price variance (purchase basis) $4,500 (favorable)
Materials quantity variance $???? (unfavorable)
Labor rate variance $5,400 (unfavorable)
Labor efficiency variance $???? (unfavorable)

(b) Determine the standard variable cost of 1,700 tents produced, separated into direct materials and labor.

Direct Materials $????
Direct Labor $????
Total standard variable cost $????

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