Reference no: EM132687177

Problem - Direct materials and direct labor variance analysis

Heart Dress Co. manufactures dresses in a small manufacturing facility. Manufacturing has 20 employees. Each employee presently provides 35 hours of productive labor per week. Information about a production week is as follows:

Standard wage per hr. $10.60

Standard labor time per dress 15 min.

Standard number of yds. of fabric per dress 4.0 yds.

Standard price per yd. of fabric $2.90

Actual price per yd. of fabric $3.05

Actual yds. of fabric used during the week 14,200 yds.

Number of dresses produced during the week 3,500

Actual wage per hr. $10.00

Actual hrs. per week 700 hrs.

Instructions -

Compute the standard cost per dress for direct materials and direct labor.

Compute the price variance, quantity variance, and total direct materials cost variance.

Compute the rate variance, time variance, and total direct labor cost variance.