1 Chapter 10: Applying Excel 2 3 Data 4 Exhibit 10-1: Standard Cost Card 5 Input

Question

1Chapter 10: Applying Excel     2      3Data     4Exhibit 10-1: Standard Cost Card     5InputsStandard QuantityStandard Price 6 Direct materials3.0pounds$4.00  7 Direct labor0.50hours$22.00per hour 8 Variable manufacturing overhead0.50hours$6.00per hour 9      10 Actual results:     11    Actual output1,910units   12    Actual variable manufacturing overhead cost$6,490    13  Actual QuantityActual price 14    Actual direct materials cost5,535pounds$4.3pounds 15    Actual direct labor cost1,100hours$22.4per hour 16   

a-1. What is the materials quantity variance?

a-2. What is the materials price variance?

b-1. What is the labor efficiency variance?

b-2. What is the labor rate variance?

c-1. What is the variable overhead efficiency variance?

c-2. What is the variable overhead rate variance?

Explanation / Answer

a-1 Material Quantity Variance (Standard Quantity for Actual Output - Actual Quantity) X Standard Price = [(1,910 x 3) - 5,535] X 4.00 = 780 Favourable a-2 Material Price Variance (Standard Price - Actual Price) X Actual Quantity Consumed = [4.00 - 4.30] X 5535 Pounds = 1,660.50 Unfavourable b-1 Labour Efficieny Variance (Standard Hours for Actual Output - Actual Hours worked ) X Standard rate = [(1,910 x 0.5) - 1,100] X 22 = 3,190 Unfavourable b-2 Labour Rate Variance (Standard rate - Actual rate) X Actual Hours = [22 - 22.4] X 1,100 hours = 440 Unfavourable C-1 Variable Overhead efficeinecy Variance (Standard Hours - Actual Hours worked ) X Standard rate = [(1,910 x 0.5) - 1100] X 6 = 870 Unfavourable C-2 Variable Overhead rate Variance (Standard rate - Actual rate) X Actual Hours Worked = [6.00 - (6490/1,100)] X1,100 hours = 110 Favourable

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