Hieken is preparing the variance analysis report for October. Standard Costs are as follows:
Direct Material 2.0 yards at $6 per yard
Direct Labor 0.25 hours at $12 per hour
During October, Ms Hieken's report shows:
100,000 gowns produced
175,000 yards of fabric purchased at a cost of $1,137,500
185,000 yards of fabric used
Employees worked 24,000 hours at a cost of $276,000
Part a) The material price variance is ??
Part b) The material quantity variance is ??The Alperti Company manufactures surgical gowns for hospitals. Their controller, Ethell
Material price Material Quantity Variance
$87,500 favorable ---- $87,500 unfavorable
$87,500 unfavorable ---- $90,000 favorable
$90,000 favorable ---- $87,500 favorable
$90,000 unfavorable ---- $90,000 unfavorable