# Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost

September 29, 2018

Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 1,000 direct labor-hours each month and produce 2,000 robes. The standard costs associated with this level of production are as follows: TotalPer Unitof Product Direct materials\$41,400 \$ 20.70 Direct labor\$8,0004.00 Variable manufacturing overhead (based on direct labor-hours)\$3,4001.70 \$ 26.40 During April, the factory worked only 1,100 direct labor-hours and produced 2,400 robes. The following actual costs were recorded during the month: TotalPer Unitof Product Direct materials (8,200 yards)\$48,000 \$ 20.00 Direct labor\$10,0804.20 Variable manufacturing overhead\$4,3201.80 \$ 26.00 At standard, each robe should require 3.00 yards of material. All of the materials purchased during the month were used in production. Required:Compute the materials price and quantity variances for April:(Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.)Compute the labor rate and efficiency variances for April: (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.)Compute the variable manufacturing overhead rate and efficiency variances for April: (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places.)

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