Reference no: EM133030456
Question 1 - 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 5.00 yards at $5.80 per yard
Direct labor of 3.00 hours at $16.00 per hour
Overhead applied per sleeping bag at $20.00
In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.30 per yard. The labor used was 11,700 hours at an average rate of $19.50 per hour. The actual overhead spending was $96,200.
Determine the labor rate variance and round to the nearest whole dollar. Enter a favorable variance as a positive number. Enter an unfavorable variance as a negative number. Enter as a whole number (no cents).
Question 2 - On March 21, 2021, Christine worked 4.5 hours on Job A-1, and 3 hours on general "overhead activities." Christine is paid $18 per hour. Overhead is applied based on $20 per direct labor hour. Additionally, on March 21 Job A-1 requisitioned and entered into production $260 of direct material. On March 21, Christine, while working on Job A-1 used $27 of indirect material. Indirect material is included in the overhead application rate. Use this information to determine the total cost that should have been recorded in the Work in Process for Job A-1 on March 21? Round your answer to the closest whole number (no cents).
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