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Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags...

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Accounting

Bowie Sporting Goods manufactures sleeping bags. Themanufacturing standards per sleeping bag, based on 5,000 sleepingbags per month, are as follows:

Direct material of 6.00 yards at $5.75 per yard

Direct labor of 3.00 hours at $17.00 per hour

Overhead applied per sleeping bag at $15.00

In the month of April, the company actually produced 5,200sleeping bags using 27,300 yards of material at a cost of $5.10 peryard. The labor used was 11,700 hours at an average rate of $18.50per hour. The actual overhead spending was $96,200.

Determine the total materials variance and round to the nearestwhole dollar. Enter a favorable variance as a negative number.Enter an unfavorable variance as a positive number.

Answer & Explanation Solved by verified expert
3.9 Ratings (672 Votes)

Total material variance = $40,170 Favorable

Standard DATA for 5200 Meals
Quantity (SQ) Rate (SR) Standard Cost
[A] [B] [A x B]
Direct Material ( 6 Yards x 5200 Meals)=31200 Yards $              5.75 $    1,79,400.00

.

Actual DATA for 5200 Meals
Quantity (AQ) Rate (AR) Actual Cost
Direct Material 27300 $            5.10 $   1,39,230.00

.

Material Price Variance
( Standard Rate - Actual Rate ) x Actual Quantity
( $                 5.75 - $                5.10 ) x 27300
17745
Variance $     17,745.00 Favourable-F
Material Quantity Variance
( Standard Quantity - Actual Quantity ) x Standard Rate
( 31200 - 27300 ) x $       5.75
22425
Variance $     22,425.00 Favourable-F
Total Material Variance
( Standard Cost - Actual Cost )
( $   1,79,400.00 - $ 1,39,230.00 )
40170
Variance $     40,170.00 Favourable-F

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