Alya Company manufactures curtains. To complete a curtain, Alya requires the following input: ...
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Accounting
| Alya Company manufactures curtains. To complete a curtain, Alya requires the following input: | |||||||
| Direct material standard | 3.5 | square yards at | $ 0.50 | per yard | |||
| Direct labor standard | 0.5 | hours at | $ 4.00 | per hour | |||
| Budgeted fixed cost per quarter is | $ 6,000.00 | . Budgeted selling price | $ 11.25 | . | |||
| During the second quarter the company budgeted to produce and sell | 400 | curtains. | |||||
| Actual information for the second quarter is provided below: | |||||||
| Number of curtains made and sold | 380 | ||||||
| Selling price | $ 11.81 | ||||||
| Fabric used in production | 1,277 | square yards | |||||
| Direct Labor used in production | 181 | hours | |||||
| Total cost of fabric used | $ 798.00 | ||||||
| Total cost of direct labor | $ 912.00 | ||||||
| Fixed cost incurred | $ 5,700.00 | ||||||
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