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TagsDebits And Credits Cost Of Goods Sold Inventory Human Resource Management Cost
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Wilson Manufacturing Company produces beach chairs. Chair frames are all the same size, but can be made from plastic, wood, or aluminum.
Regardless of frame choice, the same sailcloth is used for the seat on all chairs. Wilson has set a standard for sailcloth of $9.90 per square yard and
each chair requires 1 square yard of material. Wilson produced 500 plastic chairs, 100 wooden chairs, and 250 aluminum chairs during June. The
total cost for 1,000 square yards of sailcloth during the month was $10,000. At the end of the month, 50 square yards of sailcloth remained in

85. Refer to Wilson Manufacturing Company. The unfavorable material price variance for sailcloth purchases for the month was

a. $ 100.
b. $ 495.
c. $1,090.
d. $1,585.

86. Refer to Wilson Manufacturing Company. Assuming that there was no sailcloth in inventory at the beginning of June, the unfavorable material
quantity variance for the month was
a. $ 495.
b. $ 500.
c. $ 990.
d. $1,000.

850 chairs * 1 yard per chair 850 yards

Actual usage (1,000 - 50) 950 yards

Unfavorable usage variance 100 yards


$ 990

87. Refer to Wilson Manufacturing Company. Wilson could set a standard cost for which of the following?



OH rate

a. yes yes yes
b. no no no
c. yes no no
d. no yes yes

$10,000 ÷ 1,000 $10.00 per yard

$(9.90 - 10.00) * 1,000 yards $100

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