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Data Exhibit 11-2: Standard Cost Card Inputs Standard Price $4.00 per pound $22.

ID: 2452359 • Letter: D

Question

Data Exhibit 11-2: Standard Cost Card Inputs Standard Price $4.00 per pound $22.00 per hour $6.00 per hour Standard Quantity Direct materials Direct labor Variable manufacturing overhead 3.0 pounds 0.50 hours 0.50 hours Actual results Actual output Actual variable manufacturing overhead cost 2,000 units $7,140 Actual Quantity Actual direct materials cost Actual direct labor cost 6,500 pounds ,050 hours Actual price $3.80 per pound $21.60 per hour Enter a formula into each of the cells marked with a? below Main Example: Chapter 11 Exhibit 11-5: Standard Cost Variance Analysis-Direct Materials Standard Quantity Allowed for the Actual Output, at Standard Price Actual Quantity of Input, at Standard Price Actual Quantity of Input, at Actual Price Direct materials variances ? pounds x ? pounds x ? pounds x ? per pound = ? per pound = ? per pound = Materials quantity variance Materials price variance Materials spending variance Exhibit 11-6: Standard Cost Variance Analysis-Direct Labor Standard Hours Allowed for the Actual Output, at Standard Rate Actual Hours of Input, at Standard Rate Actual Hours of Input, at Actual Rate Direct labor variances ? hoursx ? hoursx ? hoursx ? per hour= ? per hour= ? per hour= Labor efficiency variance Labor rate variance Labor spending variance

Explanation / Answer

1)standard quantity allowed for actual output at standard price = (2000 *3) = 6000 pounds * 4 per pound = $ 24000

Actual quantity of input at standard price = 6500 pouds * 4 =$ 26000

Actual quantity of input at actual price = 6500 *3.80 = $ 24700

Material quantity variance = SR * AQ - SR *SQ

                                               = 26000 - 24000

                                              = 2000 (U)

Material price variance =   AQ *AR - AQ *SR

                                          = 24700 - 26000

                                         = -1300 (F)

Material spending variance = AQ*AR - SQ*SR

                                               = 24700 - 24000

                                             = 700 (u)

2))standard Hours allowed for actual output at standard Rate = (2000*.50) = 1000 * 22 = $ 22000

Actual Hours of input at standard Rate = 1050 * 22 =$ 23100

ActualHours of input at actual Rate = 1050 * 21.60 =$ 22680

Labor efficiency variance = SR * AH   - SR *SH

                                             = 23100 - 22000

                                              = 1100(U)

Labor rate variance = AH *AR   -AH*SR

                                      = 22680 - 23100

                                      =-420 (F)

LABOR SPEnding variance = AH*AR - SH*SR

                                              = 22680 - 22000

                                            = 680(U)