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In December, Sam Antari, president of Antari Inc., received the following information from Denise Sweet, the new controller, in regard to November production of travel bags: November production .................................. 4,800 bags Actual cost of material purchased and used ...... $14,550 Standard material allowed ............................... 0.5 square yard per bag Material quantity variance .............................. $600 U Standard price per yard of material ....................... $6 Actual hours worked .................................... 9,760 hours Standard labor time per bag .............................. 2 hours Labor rate variance ....................................... $1,464 F Standard labor rate per hour ............................ $17 Antari asked Sweet to provide the following information: a. Standard quantity of material allowed for November production. b. Standard direct labor hours allowed for November production. c. Material price variance. d. Labor efficiency variance. e. Standard prime (direct material and direct labor) cost to produce one travel bag. f. Actual cost to produce one travel bag in November. g. An explanation for the difference between standard and actual cost; be sure that the explanation is consistent with the pattern of the variances.
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