Help Save & Exit Part of your company\'s accounting database was destroyed when
ID: 2563156 • Letter: H
Question
Help Save & Exit Part of your company's accounting database was destroyed when Godzilla attacked the city You have been able to gather the following data from your files. Reconstruct the remaining information using the available data. All of the raw material purchased during the period was used in production. (Indicate the effect of each veriance by selecting Fevorable" or "Unfovorable" Select "None and enter "O" for no effect fi.e zero variance). Round "per unit" answer values to 2 decimal places.) 5 1000 per b Standard price or rate per unit of input Standard quantity per unit of output Actual quantihy used per unit of ourput Actual price or rate per unit of input Actual output Direct-material price variance 2 20 hours 16.00 per hour bs per unt S 9.00 per b B 000 units S 44200F 32 200 F 45.000 F Total direct-labor variance 5 27400Explanation / Answer
Direct labor
Labor rate variance =Total variance -labor efficiency variance
= -27400 F- (-45000F)
= -27400+45000
= 17600 U
Actual hours = 8000*2.2= 17600
labor rate variance =AH[AR-SR]
17600 = 17600[16-SR]
17600/17600 = 16-SR
1 = 16-SR
SR= 16-1= $15 PER HOUR
Labor efficiency variance = SR[AH-SH]
-45000 = 15 [17600-SH]
-45000/15 = [17600-SH]
-3000 = [17600-SH
Standard hours = 17600+3000
= 20600 hours
standard hours per unit =20600/8000= 2.575 per unit
Direct material:
Direct material quantity variance =Total variance -price variance
-32200-(-44200)
-32200+44200
12000 U
material price variance =AQ[AR-SR]
-44200= AQ [9-10]
-44200 =AQ *-1
AQ = -44200/-1 = 44200 Ib
actual quantity per unit =44200/8000= 5.525 per unit
Material quantity variance =SR[AQ-SQ]
12000=10[44200-SQ]
12000/10 =44200-SQ
1200 =44200-SQ
SQ= 44200-1200= 43000
Standard quantity per unit = 43000/8000= 5.375 per unit
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