PR 7-1B Vintage Dresses Inc. manufactures dresses in a small manufacturing facility. Manufacturing has 20 employees. Each employee presently provides 35 hours of productive labor per week. Information about a production week is as follows:
Standard wage per hr. $10.80
Standard labor time per dress 12 min.
Standard number of yds of fabric per dress 38 yds
Standard price per yd of fabric $2.90
Actual price per yd of fabric $2.75
Actual yds of fabric used during the week 12,100 yds
Number of dresses produced during the week 3,250
Actual wage per hour $11.00
Actual hours per week 700 hrs
a. Determine the standard cost per dress for direct materials and direct labor. Round the cost per unit to two decimal places.
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Use the minus sign to enter favorable variances as negative numbers.
c. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Use the minus sign to enter favorable variances as negative numbers.
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