80.2K

Verified Solution

Link Copied!

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2020, 10,600 sults were produced. The following standard and actual cost data applied to the month of May when normal capacity was 13,000 direct labor hours. All materials purchased were used. Cost Element Standard (per unit) Direct materials 6 yards at $4.00 per yard $243,960 for 64,200 yards ($3.80 per yard) Direct labor 1.10 hours at $14.00 per hour $182,120 for 12,560 hours ($14.50 per hour) Overhead 1.10 hours at $6.20 per hour (fixed $3.50; variable $2.70) $49.100 fixed overhead $37.500 variable overhead Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $45.500, and budgeted variable overhead was $35,100 Compute the total price, and quantity variances for (1) materials and (2) labor. (Round per unit values to 2 decimal places, 68.52.75 and final answers to decimal places, es. 52) (1) Total materials variance Materials price variance Materials quantity variances (2) Total labor variance Labor price variance Labor quantity variance Compute the total overhead variance, Labor quantity variance (b) Compute the total overhead variance. Total overhead variance $ e Textbook and Media Attempts: 0 of 3 used Subm Save for Later

Answer & Explanation Solved by verified expert

See Answer