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Variances in a Dress Manufacturing Operations
Dresses by Audrey Inc.Audrey Inc. manufactures silk dresses in a small manufacturing facility. Manufacturing has 20 employees. Each employee presently provides 36 hours of productive labor per week. Information about a production week is as follows:
Standard wage per hour $10.65Standard labor time per dress 20 minutesStandard number of yards of silk per dress 3.8 yardsStandard price per yard of silk $2.75Actual price per yard of silk $2.80Actual yards of silk used during the week 7,500 yardsNumber of dresses produced during the week 2,100Actual wage per hour $10.80Actual hours per week 720 hours
Instructions:Determine (A) the standard cost per a dress for direct materials and direct labor, (B) the price variance, quantity variance, and total direct materials cost variance, and (C) the rate variance, and total direct labor cost variance.
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