Banner company manufactures flags of various countries each

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Banner Company manufactures flags of various countries. Each flag has a standard of eight square feet of fabric and three hours of direct labor time. Information about recent production activity follows.

  • Actual cost of fabric: $4.50 per square foot
  • Fabric consumed: 32,080 square feet
  • Standard price per square foot of fabric: $4.25
  • Standard direct labor rate: $10.00 per hour
  • Actual direct labor rate: $10.20 per hour
  • Actual labor hours worked: 11,940
  • Actual production completed: 4,000 flags

a. Compute the materials price variance and the materials quantity variance.

b. Compute te labor rate variance and the labor efficiency variance.

Reference no: EM13572531

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