am. 157. Nakita Inc. makes a popular running jacket. The company is developing standards for material,labour, & variable manufacturing overhead.The standard cost for one jogging suit would be:SQ/SHSP/SRStandard CostDM3.5 yards$6/yard$21DL2.0 hours$18/hour$36VMOH2.0 hours$4/hour$8Cost per Jacket$65Data for last month's production:# of jackets produced20000 yards of Material purchasedYards of Material usedCost of Direct Labour hours (10500 hours)Required:5,000 units$118,00020,000 yards$200,0001. A. Compute the direct materials price and quantity variances. What is the total materialvariance?B. Please provide one reason why DM price and/or quantity is F or U?2. A. Compute the direct labour rate and efficiency variances. What is the total labourvariance?B. Please provide one reason why labour efficiency is F or U?

Direct materials variance occurs due to the difference between the actual cost incurred for…

Nakita Inc. makes a popular running jacket. The company is developing standards for material, labour, & variable manufacturing overhead. The standard cost for one jogging suit would be: SQ/SH SP/SR Standard Cost DM 3.5 yards $6/yard $21 DL 2.0 hours $18/hour $36 VMOH 2.0 hours $4/hour $8 Cost per Jacket $65 Data for last month's production: # of jackets produced 5,000 units

Nakita Inc. makes a popular running jacket. The company is developing standards for material, labour, & variable manufacturing overhead. The standard cost for one jogging suit would be: SQ/SH SP/SR Standard Cost DM 3.5 yards $6/yard $21 DL 2.0 hours $18/hour $36 VMOH 2.0 hours $4/hour $8 Cost per Jacket $65 Data for last month's production: # of jackets produced 5,000 units

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter13: The Balanced Scorecard: Strategic-based Control

Section: Chapter Questions

Problem 8E: Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its...

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