Compute all standard cost variances for materials and labor

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Reference no: EM132794454

Question - Variance Computations and Explanations - Tarptent manufactures camping tents from a lightweight synthetic fabric. Assume the company's two-person tent has a standard materials cost of $60, consisting of 4 yards of fabric at $15 per yard.

The standards call for 1.5 hours of assembly at $20 per hour. The following data were recorded for October, the first month of operations:

Fabric purchased 6,500 yards × $14.50 per yard

Fabric used in production of 1,200 tents 4,850 yards

Direct labor used 1,850 hours × $19.50 per hour

Required -

a. Compute all standard cost variances for materials and labor.

b. Give one possible reason for each of the preceding variances.

c. Determine the standard variable cost of the 1,200 tents produced, separated into direct materials and labor.

Reference no: EM132794454

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