Nancy's Draperies manufactures curtains.A certain window curtain requires the following:
During the second quarter,the company made 1,500 curtains and used 14,000 square yards of fabric costing $72,000.Direct labor totaled 7,600 hours for $83,600.
Required:
a.Compute the direct materials price and efficiency variances for the quarter.
b.Compute the direct manufacturing labor price and efficiency variances for the quarter.
Definitions:
Accrued Revenue
Represents the income that has been earned but not yet billed or received by the company.
Prepaid Expense
Payments made in advance for goods or services to be received in the future, recorded as assets on the balance sheet.
Services Provided
The activities or functions performed by a business or organization for the benefit of its customers, which do not result in the ownership of a physical product.
Biweekly Salaries
Payments made to employees every two weeks, totaling 26 pay periods in a year.
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