Reference no: EM132814134

Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

1. Direct material of 6.00 yards at $5.25 per yard
2. Direct labor of 3.00 hours at $19.00 per hour
3. Overhead applied per sleeping bag at $18.00

In the month of April, the company actually produced 4,900 sleeping bags using 24,200 yards of material at a cost of $5.50 per yard. The labor used was 11,500 hours at an average rate of $19.50 per hour. The actual overhead spending was $96,200.

Problem 1: Determine the materials price variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.