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San Jose State University Operations And Supply Chain Management Assignment Help - Surgical Products

Question - Surgical Products produces latex surgical gloves. Machines perform the majority of the processing for
1,000 pairs of gloves per hour. Each pair of gloves requires 0.85 square foot of latex, which has a
standard price of $0.80 per square foot. Machine operators are considered direct labor and are paid
$15 per hour.
During one week in May, Surgical Products produced 300,000 pairs of gloves and experienced a
$1,440 unfavorable material quantity variance. The company had purchased 2,500 more square feet
of material than had been used in production that week. The unfavorable material price variance for
the week was $5,186. A $288 unfavorable total labor variance was generated based on 315 total
actual labor hours to produce the gloves. D ...Read More

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