Sandard Co Stahdard maneri Actual Co Actual material purc wsed and used-130,000
ID: 2565834 • Letter: S
Question
Sandard Co Stahdard maneri Actual Co Actual material purc wsed and used-130,000 poands Actual sotal labor coss 51,700,000 Actual variable overhead 51,000,c00 Actuel fixed overbead -560,000 nuterials qoanity varianoe, pnice variance, sed total cost varissice, (b) the diroct ulboe tene variansce, and vanance, rate variance, and total cost variance, and (c) the factory overhead volusve variance, contrelable total factory ovethead cost variasce. (Nobe. It ollowing text fowalas, ds not reund interim Direct maberials Quannity Variance Direst materials Price Ver Total Maternials Cost Variance Dlrect lsbor rate variance Total direct labor cont variance Factory overhcad volume variase Factory overhead conirollable variance Total factery overhead cont variuance Cogyright Cengage Leaning Powered by CogneroExplanation / Answer
Direct Material Variance
Standard costs
Material qty per unit
8
lbs
Material qty for 16,500 units
132000
lbs
Material price per lbs
$12
per lbs
Total standard material cost
$15,84,000
Actual costs
Material qty per unit
7.88
lbs
Material qty for 16,500 units
130000
lbs
Material price per lbs
$12.31
per lbs
Total Actual material cost
$16,00,000
Total Material Cost Variance
= Standard cost - Actual cost
= $1,540,000 - 1,600,000
-$16,000
Unfavorable
Direct Material price Variance
= Actual Qty x (Standard price - Actual price)
= 130,000 x ($12-$12.31)
$40,300
Unfavorable
Material Qty Variance
= Standard cost x (Standard qty-Actual Qty)
= $12 x (132,000 - 130,000)
$24,000
Favorable
Direct Labor Variance
Standard costs
Labor Hours per unit
4
Hours
Labor hours for 16,500 units
66000
Hours
Labor rate per lbs
$26
per Hour
Total standard Labor cost
$17,16,000
Actual costs
Labor hours per unit
3.94
Hours
Labor hours for 16,500 units
65000
Hours
Labor price per lbs
$26.15
per Hour
Total Actual Labor cost
$17,00,000
Total Labor Cost Variance
= Standard cost - Actual cost
= $1,716,000 - 1,700,000
$16,000
Favorable
Direct Labor price Variance
= Actual hours x (Standard rate - Actual rate)
= 65,000 x ($26-$26.15)
-$10,000
Unfavorable
Labor Efficiency Variance
= Standard rate x (Standard hours-Actual hours)
= $26 x (66,000 - 65,000)
$26,000
Favorable
Overhead rates
Labor Hours per unit
4
Hours
Labor hours for 16,000 units
64000
Hours
Fixed overhead
$6,40,000
Fixed overhead - per labor hour
$10.00
Variable overhead per labor hour
$15.00
Predetermined overhead rate - per labor hour
$25.00
Factory Overhead Volume variance
= Budgeted Allowance Based on Standard hours allowed - Overhead charged to production
= Predetermine Overhead rate x (Budgeted hours - Standard hours for Actual output)
= $25.00 (64,000 - 66,000)
-$50,000
Favorable
Factory overhead controllable variance
= Actual Factory Overhead -Budgeted Overhead on standard hours allowed
= ($1,000,000 + 640,000) - (66,000 x $25.00)
-$10,000
Favorable
Direct Material Variance
Standard costs
Material qty per unit
8
lbs
Material qty for 16,500 units
132000
lbs
Material price per lbs
$12
per lbs
Total standard material cost
$15,84,000
Actual costs
Material qty per unit
7.88
lbs
Material qty for 16,500 units
130000
lbs
Material price per lbs
$12.31
per lbs
Total Actual material cost
$16,00,000
Total Material Cost Variance
= Standard cost - Actual cost
= $1,540,000 - 1,600,000
-$16,000
Unfavorable
Direct Material price Variance
= Actual Qty x (Standard price - Actual price)
= 130,000 x ($12-$12.31)
$40,300
Unfavorable
Material Qty Variance
= Standard cost x (Standard qty-Actual Qty)
= $12 x (132,000 - 130,000)
$24,000
Favorable
Direct Labor Variance
Standard costs
Labor Hours per unit
4
Hours
Labor hours for 16,500 units
66000
Hours
Labor rate per lbs
$26
per Hour
Total standard Labor cost
$17,16,000
Actual costs
Labor hours per unit
3.94
Hours
Labor hours for 16,500 units
65000
Hours
Labor price per lbs
$26.15
per Hour
Total Actual Labor cost
$17,00,000
Total Labor Cost Variance
= Standard cost - Actual cost
= $1,716,000 - 1,700,000
$16,000
Favorable
Direct Labor price Variance
= Actual hours x (Standard rate - Actual rate)
= 65,000 x ($26-$26.15)
-$10,000
Unfavorable
Labor Efficiency Variance
= Standard rate x (Standard hours-Actual hours)
= $26 x (66,000 - 65,000)
$26,000
Favorable
Overhead rates
Labor Hours per unit
4
Hours
Labor hours for 16,000 units
64000
Hours
Fixed overhead
$6,40,000
Fixed overhead - per labor hour
$10.00
Variable overhead per labor hour
$15.00
Predetermined overhead rate - per labor hour
$25.00
Factory Overhead Volume variance
= Budgeted Allowance Based on Standard hours allowed - Overhead charged to production
= Predetermine Overhead rate x (Budgeted hours - Standard hours for Actual output)
= $25.00 (64,000 - 66,000)
-$50,000
Favorable
Factory overhead controllable variance
= Actual Factory Overhead -Budgeted Overhead on standard hours allowed
= ($1,000,000 + 640,000) - (66,000 x $25.00)
-$10,000
Favorable
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