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Question - Manhattan Fabrics
During March Manhattan Fabrics Corporation manufactured 1,000 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to March.
DM purchased: 36,000 yards @ $1.38 per yard
DM used: 19,000 yards @ $1.38 per yard
DL: 4,200 hours @ $9.15 per hour
The standard prime costs for one unit of Stylex are as follows:
DM: 20 yards @ $1.35 per yard $27
DL: 4 hours @ $9.00 per hour $36
Total prime costs per unit of output $63
Compute the following:
Material variances
Labor variances
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