Kimmel Accounting Tools for Business Decision Making Se Help

Kimmel, Accounting: Tools for Business Decision Making, Se Help I System Announcements Problem 23-3A (part level submission) Clothiers is a small company that manufactures tall-men\'s suits. The company has Hopkins produced. The following standard and actual cost data e standard cost accounting system. It May 2014, 11,000 sults were ll maneras purchased werw applied to the month of May when normal capacity was 16,000 direct laber hours. A Direct materials Direct labor 10 yards at $4.50 per yard 1.10 hours at $13.00 per hour 1.10 hours at 96.70 per hour (fixed $3.70; variabie $ for 110,880 yards (4.3 172,190 for 12.850 hours(83 40 per hour 8,800 fsed overead $37,000 varlable overhead per yard) Overhead is applied on the basis of drect labor hours. At nornal capacity, b dgeted nsed overhead costs were 59,200, and budgeted wate nenad $4A00. tudy(a) for (1) materials and (2) labor (Round anwers to decimal places e.p. 125 (1) Total materiais variance Materials price varilance Materials quantity variance (2) Total labor variance Labor price variance Labor quantity variance k if you would like to Show Work for this question! Openowark Clic 4

Solution

1.

Total Materials Variance

$ 14,414 (F)

Material Price Variance

$ 3,969 (U)

Material Quantity Variance

$ 10,454 (F)

2.

Total Labour Variance

$ 14,890 (U)

Labour Price Variance

$ 5,140 (U)

Labour Quantity Variance

$ 9,750 (U)

Working Note 1 : Material Price Variance= (Standard Rate/yard-Actual Rate/yard)* Actual Quantity used

                                                                 =( $4.50/yard- $4.37/yard)*1,10,880 yards

                                                           =$ 14,414 (F)

Material Quantity Variance=( Standard quantity of materials used for actual output-Actual quantity of materials used)* Standard Rate

                                     =( 1,10,000 yards-1,10,880 yards)* $ 4.50/yard

                                           =$ 3,960 (U)

Total Material Cost Variance= Material Price Variance+ Material Quantity Variance

                                                       =$ 14,414(F) + $ 3,960(U)= $ 10454(F)

Working Note2. Labour Price Variance== ( StandardRate/hour-Actual rate/hour)*Actual hours

                                 =Standard Rate/hour*Actual hours-Actual Rate/hour*Actual hours

                              =( $ 13/hour - $ 13.40/hour)*12850 hours

                                   =$ 5,140(U)

Labour Quantity Variance=( Standard hours for Actual Output-Actual Hours)*Standard rate/hour

                                                   =( 12,100 hours-12,850 hours)* $ 13/hour

                                               = $ 9,750 (U)

Total Labour Variance=Labour Price Variance+ Labour Quantity Variance)

                                             = $5,140(U) +$ 9,750(U)=$ 14,890(U)

               

1.	Total Materials Variance	$ 14,414 (F)
	Material Price Variance	$ 3,969 (U)
	Material Quantity Variance	$ 10,454 (F)
2.	Total Labour Variance	$ 14,890 (U)
	Labour Price Variance	$ 5,140 (U)
	Labour Quantity Variance	$ 9,750 (U)