The following data were drawn from the records of Zachary Corporation Planned vo

Question

The following data were drawn from the records of Zachary 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 5,000 units 4.10 pounds $1.20 per pound 2.60 hours $4.80 per hour $25,000 5,500 units 3.50 pounds $1.60 per pound 2.80 hours $4.20 per hour $20,600 Required 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 Zachary 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). Complete this question by entering your answers in the tabs below

Explanation / Answer

Solution a:

Solution b:

Material Price Variance = (SP-AP)*Actual Quantity = ($1.2-$1.6) * 19250 = $7,700 U

Material Usage Variance = (SQ - AQ)* SP = (22,550-19,250)* $1.2 = $3,960 F

Solution c:

Solution d:

Labor Price Variance = (SP-AP)* Actual Hours used = ($4.8-$4.2)* 15,400 = $9,240 F

Labor Usage Variance = (SH-AH)* SP = (14,300-15,400)* $4.80 = $5,280 U

As per Chegg policy, four subparts have been answered. Please post another question for remaining parts.

Material Variance Information table Standard Price $1.20 per pound Actual Price $1.60 per pound Standard Quantity for Flexible budget 22,550 pounds Actual Quantity used 19,250 pounds

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