Gemma Products Produces and Sells a Variety of Domestic Goods

question 29

Essay

Gemma Products produces and sells a variety of domestic goods including sheets. In the current year, the company budgeted for the production and sale of 10,000 sets; however, 12,000 sets were actually produced and sold. Each set has a standard requiring 10 yards of material at a cost of $1.10 per yard and 20 minutes of direct labor (for sewing, assembly, and inspection) at a cost of $.20 per minute. Actual costs for the production of 12,000 sets were $138,240 for materials (128,000 yards purchased and used @ $1.08 per yard) and $55,200 for labor (230,000 minutes @ $.24 per minute).
Required: Compute each of the following variances. Indicate whether the variance is favorable (F) or unfavorable (U).

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Definitions:

Largest City

The city that has the highest population or covers the largest area within a given country or region.

San Francisco

A cultural, commercial, and financial center in northern California, USA, known for its historic landmarks, tech industry, and diverse culture.

Los Angeles

A major city in the state of California, USA, known for its significant cultural, economic, and entertainment influence.

American West

A region of the United States generally considered to encompass the westernmost states, associated with frontier history, expansion, and cultural distinctiveness.