Reference no: EM131292102
During March, Manhattan Fabrics Cooperation manufactured 1,000 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex peoduction department also pertains to March.
Direct material purchased 36,000 yards at $1.38 per yard------------------------------------------$49,680
Direct material used: 19,000 yards at $1.38 per yard--------------------------------------------------$26,220
Direct Labor: 4200 hours at $9.15 pern hour---------------------------------------------------------------$38,430
The standard prime costs for one unit of Stylex are as follows:
Direct material: 20 yards at $1.35 per yard-----------------------------------------------------------------$27
Direct labor: 4 hours at $9.00 per hour-----------------------------------------------------------------------36
Total standard prime cost per unit of output-----------------------------------------------------------------$63
Compute the following variances for the month of March, indicating whether each variance is favorable or unfavorable
* Direct -labor efficiency variance
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