+1-415-670-9189
info@expertsmind.com
Compute both the rate variance and efficiency variance for
Course:- Accounting Basics
Reference No.:- EM13601459




Assignment Help
Assignment Help >> Accounting Basics

Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using 27,600 yards of fabric costing $3.05 per yard and incurring direct labor costs of $16,218 for 3,180 hours of direct labor. The standard cost per pillowcase assumes 1.75 yards of fabric at $3.10 per yard, and 0.20 hours of direct labor at $5.95 per hour.

a.Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

  • Materials price variance $
  • Materials quantity variance $b.

b.Compute both the rate variance and efficiency variance for direct labor costs incurred in manufacturing pillowcases in May. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

  • Labor rate variance $
  • Labor efficiency variance $



Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Which designs and operating conditions produce the lowest and highest values of A0? What are these values? In each of these two cases, ifW/L is held at the same value but L
You are an internal auditor of a small rural bank with 3 branches. The bank's customers are mainly farmers. The bank is a publicly traded corporation (OTC) and qualifies und
Prepare a process map of the payroll processes at Alomna. Refer to the separate Microsoft Excel file Chapter 10 Solutions Process Maps.xls. Identify both internal control str
Heather & Terry have a mortgage on their primary residence of $750,000 and a mortgage on their vacation home of $410,000. In 2013, they incurred $46,400 o
Referring to the multi station serial system in the Series Simulation.xlsm file, let si and 1/µi be the number of machines and the mean processing time at station i. Then the
Paulsen Company sells 100,000 units for $15 a unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income state
Mary Marble took out a homeowner's insurance policy on her residence. One of the policy provisions listed the insured's duties with respect to a loss. This provision require
Using the value-at-risk (VAR) method based on a 95% confidence level, what is the maximum one-month loss in dollars if the expected percentage change of the euro during next