3 The following data were drawn from the records of Finch Corporation. Planned v

Question

3 The following data were drawn from the records of Finch Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 3,400 units 10 oints 3.18 pounds $1.70 per pound 2.38 hours $3.20 per hour $17,000 3,700 units 2.50 pounds $2.10 per pound 2.50 hours $2.80 per hour eBook $13,000 Required Print a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Finch uses the number of units as the allocation base f. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F or unfavorable (U). g. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U). References Complete this question by entering your answers in the tabs below Req A Req B Req C Req D Req E to G Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. (Round "Standard price" and "Actual price" to 2 decimal places.) Materials Variance Information Table Standard price Actual price Standard quantity for flexible budget Actual quantity used per pound per pound pounds pounds

Explanation / Answer

a)

Unit produced *SQ

3700*3.10

11470 pounds

3700*2.5

9250 pounds

B)

Material price variance =AQ[AR-SR]

            = 9250[ 2.1-1.7]

             = 3700 U

Material usage variance =SR[AQ-SQ]

           = 1.7[9250-11470]

             = -3774 F

C)

Unit produced *SQ

3700*2.30

8510 hours

3700*2.5

9250 hours

d)

labor price variance =AH[AR-SR]

9250[2.8-3.2]

- 3700 F

Labor usage variance =SR[AH-SH]

3.2[9250-8510]

2368 U

Material variance Information standard price $ 1.70 per pound Actualprice $ 2.10 per pound standard quantity for flexible budget

Unit produced *SQ

3700*3.10

11470 pounds

Actual quantity used

3700*2.5

9250 pounds

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