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 $5.50 per yard Direct labor of 2.50 hours at $20.00 per hour Overhead applied per sleeping bag at $16.00 In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.70 per yard. The labor used was 11,700 hours at an average rate of $16.50 per hour. The actual overhead spending was $96,200. Determine the total materials variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.
Total material variance =$26,910
Working
| Material Spending Variance | ||||||
| ( | Standard Cost | - | Actual Cost | ) | ||
| ( | $ 128,700.00 | - | $ 155,610.00 | ) | ||
| -26910 | ||||||
| Variance | $ 26,910.00 | Unfavourable-U | ||||
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| Standard DATA for | 5200 | Sleeping bag | |
| Quantity (SQ) | Rate (SR) | Standard Cost | |
| [A] | [B] | [A x B] | |
| Direct Material | ( 4.5 yards x 5200 Sleeping bag)=23400 yards | $ 5.50 | $ 128,700.00 |
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| 5200 | Sleeping bag | ||
| Quantity (AQ) | Rate (AR) | Actual Cost | |
| Direct Material | 27300 | $ 5.70 | $ 155,610 |
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