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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.)
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.)
calculate the financial ratios for the assigned companys financial statements and then interpret those results against
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Your schedule and statement must be in proper form - this means they should look like they would in an annual report-Prepare a schedule of cost of goods manufactured in good form.
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