Dresses by Melissa Inc. manufactures dresses in a small manufacturing facility. Manufacturing has 15 employees. Each employee presently provides 32 hours of productive labor per week. Information about a production week is as follows:
|
Standard wage per hour |
$10.40 |
|
Standard labor time per dress |
15 minutes |
|
Standard number of yards of fabric per dress |
4.2 yards |
|
Standard price per yard of fabric |
$2.65 |
|
Actual price per yard of fabric |
$2.70 |
|
Actual yards of fabric used during the week |
7,200 yards |
|
Number of dresses produced during the week |
1,900 |
|
Actual wage per hour |
$10.50 |
|
Actual hours per week |
480 hours |
Instructions
Determine (a) the standard cost per dress for direct materials and direct labor; (b) the price variance, quantity variance, and total direct materials cost variance; and (c) the rate variance, time variance, and total direct labor cost variance.