Vernon Mills, Inc. is a large producer of men's and women's clothing. The company uses standard...

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Accounting

Vernon Mills, Inc. is a large producer of men's and women'sclothing. The company uses standard costs for all of its products.The standard costs and actual costs per unit of product for arecent period are given below for one of the company's productlines: Materials Standard cost Actual cost Standard: 4m at $5.40per m $21.60 Actual: 4.4m at $5.05 per m $22.22 Direct labourStandard: 1.6 hrs at $6.75/hr $10.80 Actual: 1.4 hrs at $7.30/hr$10.22 Variable overhead Standard: 1.6 hrs at $2.70/hr $4.32Actual: 1.4 hrs at $3.25/hr $4.55 Total cost per unit of product$36.72 $36.99 During this period, the company produced 4,800 unitsof this product. a. Compute the materials price andquantity variance and give a possible reason for each variance. b.Compute the labour rate and efficiency variances and givea possible reason for each variance. c. Compute thevariable overhead spending and efficiency variances and give apossible reason for each variance

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Material Price Variance Standard Price Actual PriceActual Quantity 540505444800 7392 F Material Quantity Variance Standard Quantity Actual QuantityStandard Price 48004 480044540 See Answer

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