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Scandia Coat Company makes women’s and men’s coats. Both products require filler and lining material. The following planning information has been made available:
Standard quanity
Woman’s cooats Mean’s Coat’s Standard Price per Unit
Fiber 2.5 lbs 4.0 lbs $1.25
Liner 6.0 yds 8.5 yds 6.50
Standard labor time 0.30 hr 0.45 hr
Planned production 4,500 5,000 units
Standard labor rate $13.40 per hr $14.80
Scandia Coat does not expect there to be any beginning or ending inventories of filler and lining material. At the end of the budget year, Scandia Coat experienced the following actual results
Woman’s coats Men’s coats
Actual Production 4,300 5,500
Actualo price per Unit Actual Quantity Purchased and Used
Filerq $1.15 per lb 31,950
Liner 6.80 72,050
Actual Labor Rate Actual Labor Hours Used
Woman’s Coat $13.25 per hr 1,300
Man’s Coat 15.00 2,425
The expected beginning inventory and desired ending inventory were realized.
1. Prepare the following variance analyses, based on the actual results and production levels at the end of the budget year.
a. Direct materials price variance, direct materials quantity variance, and total variance.
b. Direct labor rate variance, direct labor time variance, and total variance.
Use the minus sign to enter favorable variances as negative numbers. If required, round computations to two decimal places.
Compute the combined material variances for the filler and liner.
a. Direct materials price variance:________________
Direct materials quantity variance: _______________
Total direct materials cost variance: _______________
Compute the combined labor variances for the women’s and men’s coats.
b. Direct labor rate variance: __________________
Direct labor time variance: ___________________
Total direct labor cost variance: _______________