# Wileyplus | Accounting homework help

Problem 25-3A

Problem 25­3A
Rudd Clothiers is a small company that manufactures tall­men’s suits. The company has used a standard cost accounting system. In May
2017, 10,600 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity
was 17,000 direct labor hours. All materials purchased were used.
Cost Element

Standard (per unit)

Actual

Direct materials

6 yards at \$5.00 per yard

\$312,825 for 64,500 yards (\$4.85 per yard)

Direct labor

1.20 hours at \$13.00 per hour

\$183,870 for 13,620 hours (\$13.50 per hour)

1.20 hours at \$6.90 per hour (fixed \$4.00; variable \$2.90)

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were \$68,000, and budgeted variable
(a)
Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.)
(1)

Total materials variance

(2)

Total labor variance
Labor price variance
Labor quantity variance

\$

\$

\$

Materials quantity variance

\$

Materials price variance

\$

\$

(b)

\$

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Problem 25-3A

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