Carolina Tile Company manufactures and installs industrial tile flooring. In the current year, the company had anticipated producing and installing 50,000 tiles but actually produced installed 65,000 tiles. The standard direct materials cost for each square foot of tile is $5.60 comprised of 2.80 pounds of material at a cost of $2 per pound. During the year, 200,000 pounds of material were purchased out of which 190,000 pounds were used at a cost of $1.85 per pound.
Required: Compute each of the following variances. Indicate whether the variance is favorable (F) or unfavorable (U).

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The Answer of Carolina Tile Company manufactures and installs industrial tile flooring. In the current year, the company had anticipated producing and installing 50,000 tiles but actually produced installed 65,000 tiles. The standard direct materials cost for each square foot of tile is $5.60 comprised of 2.80 pounds of material at a cost of $2 per pound. During the year, 200,000 pounds of material were purchased out of which 190,000 pounds were used at a cost of $1.85 per pound.
Required: Compute each of the following variances. Indicate whether the variance is favorable (F) or unfavorable (U).

Carolina Tile Company Manufactures and Installs Industrial Tile Flooring