Question

Goldman Company manufactures shirts. During June​, Goldman made 1 comma 600 shirts and gathered the following additional​ data: LOADING...​(Click on the icon to view the​ data.) Read the requirements LOADING....

7. Calculate the direct materials cost variance. Select the​ formula, then enter the amounts and compute the cost variance for direct materials and identify whether the variance is favorable​ (F) or unfavorable​ (U). ( Actual Cost - ▼ ) x Actual Quantity = Direct Materials Cost Variance ( - ) x =

8. Calculate the direct materials efficiency variance. Select the​ formula, then enter the amounts and compute the efficiency variance for direct materials and identify whether the variance is favorable​ (F) or unfavorable​ (U). ( Actual Quantity - ▼ ) x Standard Cost = Direct Materials Efficiency Variance ( - ) x =

9. Calculate the total direct materials variance and identify whether the variance is favorable or unfavorable. The total direct materials variance is .

10. Calculate the direct labor cost variance. Select the​ formula, then enter the amounts and compute the cost variance for direct labor and identify whether the variance is favorable​ (F) or unfavorable​ (U). ( Actual Cost - Standard Cost ) x ▼ = Direct Labor Cost Variance ( - ) x =

11. Calculate the direct labor efficiency variance. Select the​ formula, then enter the amounts and compute the efficiency variance for direct labor and identify whether the variance is favorable​ (F) or unfavorable​ (U). ( Actual Quantity - Standard Quantity ) x ▼ = Direct Labor Efficiency Variance ( - ) x =

12. Calculate the total direct labor variance and identify whether the variance is favorable or unfavorable. The total direct labor variance is . Choose from any list or enter any number in the input fields and then continue to the next question.

Data Table

Direct materials cost standard $7.00 per yard of fabric

Direct materials efficiency standard 1.70 yards per shirt

Actual amount of fabric purchased and used 2,620 yards

Actual cost of fabric purchased and used $18,602

Direct labor cost standard $12.00 per DLHr

Direct labor efficiency standard 3.00 DLHr per shirt

Actual amount of direct labor hours 4,890 DLHr

Actual cost of direct labor $57,702

Answer 1

7. Direct material cost variance = ( Actual Cost - Standard Cost ) x Actual Quantity = $ ( 7.10 - 7.00) x 2,620 yards = - $ 262. ( Unfavorable)

8. Direct materials efficiency variance= ( Actual Quantity - Standard Quantity Allowed for Actual Output ) x Standard Cost = ( 2,620 - 2,720) x $ 7.00 = $ 700 Favorable.

9. Total direct materials variance = - $ 262 U + $ 700 F = $ 438 F

10. Direct labor cost variance = ( Actual Cost - Standard Cost) x Actual Hours = $ ( 11.80 - 12.00) x 4,890 = $ 978 Favorable.

11. Direct labor efficiency variance = ( Actual Hours - Standard Hours allowed for Actual Output) x Standard Cost = ( 4,890 - 4,800) x $ 12.00 = - $ 1,080 Unfavorable.

12. Total direct labor variance = $ 978 F - $ 1,080 U = - $ 102 U