Warrier Gear manufactures clothing. A flannel shirt requires thefollowing:Standard Direct Materials 2 square yards...Warrier...

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Accounting

Warrier Gear manufactures clothing. A flannel shirt requires thefollowing:
Standard Direct Materials 2 square yards at $15 per yard
Standard Manufacturing Labor 1.5 hours at $25 per hour
During the third quarter, the company made 1,500 shirts and used3,200 square yards of fabric costing $44,800. Direct labor totaled2,100 hours for $56,700.
Required:
(A) Compute the directmanufacturing labor price and efficiency variances for the quarter.Show all computations.
(B) Describe 2 possible reasons for each of thefollowing variances: direct manufacturing labor price variance anddirect manufacturing efficiency variance.

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WARRIER GEAR PER UNIT STANDARD DIRECT MATERIAL 30 215 STANDARD MANUFACTURING LABOUR 375 1525 STANDARD COSTS 1500 UNITS STANDARD DIRECT MATERIAL 45000 2151500 STANDARD MANUFACTURING LABOUR 562500 15251500 MATERIAL QTY 3000 21500 LABOUR HOURS 2250 151500 ACTUAL COSTS See Answer

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In: AccountingWarrier Gear manufactures clothing. A flannel shirt requires thefollowing:Standard Direct Materials 2 square yards...Warrier Gear manufactures clothing. A flannel shirt requires thefollowing:Standard Direct Materials 2 square yards at $15 per yardStandard Manufacturing Labor 1.5 hours at $25 per hourDuring the third quarter, the company made 1,500 shirts and used3,200 square yards of fabric costing $44,800. Direct labor totaled2,100 hours for $56,700.Required:(A) Compute the directmanufacturing labor price and efficiency variances for the quarter.Show all computations.(B) Describe 2 possible reasons for each of thefollowing variances: direct manufacturing labor price variance anddirect manufacturing efficiency variance.