Compute both the price variance and quantity variance


Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using 27,600 yards of fabric costing $3.05 per yard and incurring direct labor costs of $20,995 for 3,230 hours of direct labor. The standard cost per pillowcase assumes 1.75 yards of fabric at $3.10 per yard, and 0.20 hours of direct labor at $5.95 per hour.

Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Negative amounts should be indicated by a minus sign. Omit the "tiny_mce_markerquot; sign in your response.)

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Compute both the price variance and quantity variance
Reference No:- TGS0684136

Expected delivery within 24 Hours