Dresses by Audrey Inc.
Audrey Inc. manufactures silk dresses in a small manufacturing facility. Manufacturing has 20 employees. Each employee presently provides 36 hours of productive labor per week. Information about a production week is as follows:
Standard wage per hour $10.65
Standard labor time per dress 20 minutes
Standard number of yards of silk per dress 3.8 yards
Standard price per yard of silk $2.75
Actual price per yard of silk $2.80
Actual yards of silk used during the week 7,500 yards
Number of dresses produced during the week 2,100
Actual wage per hour $10.80
Actual hours per week 720 hours
Instructions:
Determine (A) the standard cost per a dress for direct materials and direct labor, (B) the price variance, quantity variance, and total direct materials cost variance, and (C) the rate variance, and total direct labor cost variance.