Question

Scenario:
MadHatter manufactures baseball caps. The Accounting Faculty of PSU order 150 caps for the Accounting 211 students with ALOE imprinted on them. MadHatter has the following set of standards for the manufacture of baseball caps.

DM: ½ yard of fabric per cap
       $4.00 per yard of fabric

DL: 1 labor hour per cap
       $11.00 per labor hour

After the caps were shipped, MadHatter analyzed the actual data from production and discovered the following results.

DM: ¾ yard of fabric per cap
       $2.85 per yard of fabric

DL:        1.4 labor hours per cap
       $9..50 per labor hour
Assignment:

1. Determine the DM and DL budgets.   

Materials Required for the Production
Materials needed for each cap: ½ yard ½ * 150 = 75 yards
Material for 150 caps = $4.00 per yard of fabric 150 * 4.00 = $300

2. Calculate the Quantity and Price Variances for each budget and indicate whether each is favorable or unfavorable.

3. Provide explanations for the variances.

Solution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

1. Determine the DM and DL budgets.   

Materials Required for the Production
Materials needed for each cap: ½ yard ½ * 150 = 75 yards
Material for 150 caps = $4.00 per yard of fabric 75 * 4.00 = $300

Labor Required for the Production
Labor needed for each cap: 1 labor hour 1 * 150 = 150 labor hours
Labor hours for 150 caps = $11.00 per labor hour 150 * 11.00 = $1,650...

This is only a preview of the solution. Please use the purchase button to see the entire solution

Related Homework Solutions

Analysis of Financial Statements Project
Homework Solution
$65.00
Accounting
Business
Financial Statement
Economy
Administration
Analysis
Companies
Investments
Personal Interest
Annual Reports
Liquidity
Efficiency Ratios
Solvency Ratios
Price-Earnings Ratio
Stocks
Decisions
Charts
Tables
Coke
Pepsi
S
Accounting Questions
Homework Solution
$18.00
Business
Accounting
Finance
Economy
Assets
Discounts
Allowances
Expenses
Journal Entries
Sales Returns
Credits
LIFO
FIFO
Installation Costs
Interest Rates
Transactions
Payments
Hunt Company: Pretax Financial Income
Homework Solution
$20.00
Accounting
Business
Economy
Financial Income
Financial Loss
Taxable Income
Taxable Loss
Allowance
Records
Statements
Tax Rates
Preparing A Balance Sheet
Homework Solution
$18.00
Finance
Accounting
Economy
Administration
Balance Sheet
Debt
Goods
Sales Revenue
Taxes
Expenses
Cash
Equipment
Stock
Prepaid Expenses
Doubtful Accounts
Allowance
Get help from a qualified tutor
Live Chats