Zee Corporation has developed the following cost standards for the production of its leather backpacks:...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Zee Corporation has developed the following cost standards for the production of its leather backpacks:
| Standard Cost Per Backpack | |
| Leather (2.2 yards $23 per yard) | $50.60 |
| Direct labor (2.5 hours $8.00 per hour) | $20.00 |
| Variable overhead (2.5 hours $14.40 per hour) | $36.00 |
Variable overhead at Zee is applied on the basis of direct labor hours. The actual results for last month were as follows:
| Number of backpacks produced | 13,500 |
| Direct labor hours incurred | 32,910 |
| Yards of leather purchased | 31,420 |
| Yards of leather used in production | 30,840 |
| Cost of leather purchased | $667,675 |
| Direct labor cost | $217,206 |
| Variable overhead cost | $487,068 |
The direct materials purchases variance is computed when the materials are purchased. Required: Compute the following variances for Zee.
a. Materials price variance.
b. Materials quantity variance.
c. Labor efficiency variance.
d. Variable overhead rate variance.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.