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Last year, Vera Corporation budgeted for production and sales of 20,000 cloth handbags. Vera produced and sold 19,250 handbags. Each handbag has a standard requiring 4 feet of material at a budgeted cost of $2.50 per foot and 45 minutes of sewing time at a cost of $0.28 per minute. The handbags sell for $45.00. Actual costs for the production of 19,250 handbags were $201,600 for materials (80,000 feet at $2.52 per foot) and $260,400 for labor (868,000 minutes at $0.30 per minute). What is the handbag's direct labor efficiency variance?
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Davis Corporation has a sales budget for next month of $600,000. Cost of goods sold is expected to be 30 percent of sales. All goods are purchased in the month used and paid for in the month following purchase.
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