Managerial Accounting: P10-44 During May, Joliet Fabrics Corporation manufactured 500 units
10-44 Direct-Material and Direct-Labor Variances During May, Joliet Fabrics Corporation manufactured 500 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May. Direct material purchased: 18,000 yards at $1.38 per yard 24,840 Direct material used: 9,500 yards at $1.38 per yard 13,110 Direct labor: 2,100 hours at $9.15 per hour 19,215
The standard prime costs for one unit of Stylex are as follows: Direct material: 20 yards at $1.35 per yard 27 Direct labor: 4 hours at $9.00 per hour 36 Total standard prime cost per unit of output 63
Required: Compute the following variances for the month of May, indicating whether each variance is favorable or unfavorable. 1. Direct-material price variance. 2. Direct-material quantity variance. 3. Direct-labor rate variance. 4. Direct-labor efficiency variance.