Deporte Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After...

80.2K

Verified Solution

Question

Accounting

image
Deporte 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 (2.4 lbs. $0.95) $2.28 Direct labor (0.75 hr. $7.40) 5.55 Standard prime cost $7.83 During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs: $72,450 Direct materials Direct labor $184,625 (for 22,450 hrs.) Required: Compute the materials and bor variances associated with the changeover activity, labeling each variance as favorable or unfavorable Material Variances Price variance Favorable Usage variance Unfavorable Labor Variances Rate variance Unfavorable

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students