Question 1 - MSU makes blue jean jackets. The standard costs per jacket are as follows:
Budgeted Qty Budgeted Price
Direct Material .20 $ 60.00 per yard
Direct Labor .10 $ 30.00 per hour
MSU produced and sold 10,000 jackets using 1,000 yards of direct materials at a cost of $ 64.00 per yard and 500 hours of direct labor at a wage of $ 30.50 per hour.
What is the direct manufacturing labor efficiency variance? Also, is the variance favorable or unfavorable?
Question 2 - MSU makes blue jean jackets. The standard costs per jacket are as follows:
Budgeted Qty Budgeted Price
Direct Material .20 $ 60.00 per yard
Direct Labor .10 $ 30.00 per hour
MSU produced and sold 10,000 jackets using 1,000 yards of direct materials at a cost of $ 64.00 per yard and 500 hours of direct labor at a wage of $ 30.50 per hour.
What is the direct manufacturing material price variance? Also, is the variance favorable or unfavorable?