Great Fender, which uses a standard cost accounting system, manufactured 20,000

QUESTION

E23-19 Calculating materials and labor variances

E23-19 Great Fender, which uses a standard cost
accounting system, manufactured 20,000 boat fenders during 2014, using 144,000
square feet of extruded vinyl purchased at $1.05 per square foot. Production
required 420 direct labor hours that cost $13.50 per hour. The direct materials
standard was 7 square feet of vinyl per fender, at a standard cost of $1.10 per
square foot. The labor standard was 0.025 direct labor hour per fender, at a
standard cost of $12.50 per hour.

Compute the cost and efficiency variances for
direct materials and direct labor.

ANSWER:

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