dow Help 18 C Sun 726 p A v2cengagenowcom 0 Ma allisonsy Pro

dow Help 18% C+) Sun 7:26 p A\" v2.cengagenow.com 0 Ma- allison.sy Problem 10-19 During April, Rain Gear Unlimited produced 5,500 umbrellas from nylon that costs s0.45 per yard, which is $%0.05 cheaper than the standard cost. It also used 3,000 direct labor hours at a rate of $6.50. Its direct materials standard is 1 yard per umbrella. Its direct labor standard is 0.5 hour per umbrella. Its materials usage variance was a favorable $500 and its labor rate variance was a favorable $900. Required: A. Calculate the actual quantity of materials. B. Calculate the standard labor rate. Round your answer to two decimal places. per hour C. Determine the materials price variance and whether it is favorable or unfavorable. D. Determine the labor efficiency variance and whether it is favprable or unfavorable. E. Record the entries for (1) the materials purchase, (2) the issuance and usage of materials, and (3) the labor variances. For a compound transaction, if an amount box does not require an entry, leave it blank or enter \"0 Previous Next

Solution

Solution:-

A. MUV = (AQ-SQ)SP

-$500 = (AQ-5,500)$0.50

AQ = 4,500

B. LRV = (AR-SR)AH

-$900 = ($6.50-SR)3,000

SR = $6.80 per hour

C. MPV = (AP-SP)AQ

= ($0.45-$0.50)$4,500

= $225F

D. LEV = (AH-SH)SR

=(3,000 - 2,750)$6.80

= $1,700U

Note:- As per chegg guidelines if mote than four sub-part is posted than we liable to answer only first four sub-part.

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