# Financial and Managerial Accounting: PR22-1A Dresses by Melissa Inc. manufactures dresses in a small

Financial and Managerial Accounting
PROBLEM 22-1A Direct materials and direct labor variance analysis

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: Round all per unit answers to nearest whole cent.
a. Determine the standard cost per dress for direct materials and direct labor.
b. Determine the price variance, quantity variance, and total direct materials cost variance. Enter favorable variances with parenthesis. example (1234)
c. Determine the rate variance, time variance, and total direct labor cost variance. Enter favorable variances with parenthesis. example (1234)