Reference no: EM132270504

Question - Bowie sporting goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 4.50 yards at $5.75 per yard

Direct labor of 2.00 hours at $19.00 per hour

Overhead applied per sleeping bad at $18.00

In the month of April, the company actually produced 4,900 sleeping bags using 25,100 yards of material at a cost of $5.30 per yard. The labor used was 11,500 hours at an average rate of $17.50 per hour. The actual overhead spending was $96,200.

Determine the materials price variance. Enter a favorable variance as negative and unfavorable as positive.