Variance Computations and ExplanationsOutdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $20, consisting of 4 yards of fabric at $5 per yard. The standards call for 2 hours of assembly at $13 per hour. The following data wererecorded for October, the first month of operations:Fabric purchasedFabric used in production of 1,700 tentsDirect labor used9,000 yards x $4.80 per yard7,000 yards3,600 hours x $13.50 per hour(a) Compute all standard cost variances for materials and labor.Materials price variance (usage basis) $Materials price variance (purchase basis) $Materials quantity variance$Labor rate variance$Labor efficiency variance$♦♦◆◆(b) Which of the following is the most likely explanation for a favorable materials price variance and an unfavorable materials quantity variance?OQuantity discounts and the use of highly skilled production employees.OLast minute purchases of raw materials from a trusted supplier to meet unexpected demand for final products.OBargain purchases of high quality materials.OPurchase of low quality materials.(c) Determine the standard variable cost of the 1,700 tents produced, separated into direct materials and labor.Direct materialsDirect laborTotal standard variable cost $

Name: Variance Computations and ExplanationsOutdoor Company manufactures ca
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Variance Computations and ExplanationsOutdoor Company manufactures camping tents from a lightweight synthetic fabric. Each tent has a standard materials cost of $20, consisting of 4 yards of fabric at $5 per yard. The standards call for 2 hours of a