Madzinga's Draperies manufactures curtains. A certain window requires the following:
Direct materials standard10 square yards at $5 per square yard Direct manufacturing labor standard5 hours at $10
During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $68,600. During the period, the company purchased 14,400 square yards at $75,600. Direct labor totaled 7,600 hours for $79,800.
Compute the direct materials price and efficiency variances for the quarter.
Efficiency variance = $5.00 × [14,000 - (1,500 × 10)] = $5,000 favorable
why did professor let 1,500 times 10 then subtract from 14,000?...
really couldnt understand this part...
Thank you!!!
Direct materials standard10 square yards at $5 per square yard Direct manufacturing labor standard5 hours at $10
During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $68,600. During the period, the company purchased 14,400 square yards at $75,600. Direct labor totaled 7,600 hours for $79,800.
Compute the direct materials price and efficiency variances for the quarter.
Efficiency variance = $5.00 × [14,000 - (1,500 × 10)] = $5,000 favorable
why did professor let 1,500 times 10 then subtract from 14,000?...
really couldnt understand this part...
Thank you!!!