Bowie sporting goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:
Question
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 $5.75 per yard
Direct labor of 2.00 hours at $19.00 per hour
Overhead applied per sleeping bad at $18.00
In the month of April, the company actually produced 4,900 sleeping bags using 25,100 yards of material at a cost of $5.30 per yard. The labor used was 11,500 hours at an average rate of $17.50 per hour. The actual overhead spending was $96,200.
Determine the materials price variance. Enter a favorable variance as negative and unfavorable as positive.
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