PIO-24 Determining Standard Costs; Variance Analysis Helix Company produces seve
ID: 2523388 • Letter: P
Question
PIO-24 Determining Standard Costs; Variance Analysis Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been robes, the factory should work 780 direct labor-hours each month and produce 1,950 robes. set for the The standard costs associated with this level of production activity are as follows: Per Unit of Product Total $35,490 7,020 $18.20 Direct labor... 7, Variable manufacturing overhead 3.60 1.20 $23.00Explanation / Answer
-2400
where AQ = actual quantity used = 6000
SQ = standard quantity for actual production = 2.8 x 2000 = 5600
SP = standard price
AP = actual price. 36000/6000 = 6
here SP=AP as no other cost is given
0
where SH = std hours for actual production which is same as actual hours as no other data is given.
AH = actual hours worked
AR = actual rate per hour of labour = 7600/760 =10
SR = std rate which is same as nothing is stated. so we assume SR = AR
3. Again as there is no difference in actual rate and std rate of variable overhead and std hours and actual hours is given we can say that there is no variable spending or efficiency variance.
1) Material Price variance= AQ(SP-AP) 6000(18-18) 6000 x 0 0 Material Quantity variance = SP(SQ-AQ) 6(5600-6000) 6 x -400-2400
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