please help! Reference Formula (AC - SC) x AQ (AC - SC) x AQ Variance =$ 880 F =

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please help!

Reference Formula (AC - SC) x AQ (AC - SC) x AQ Variance =$ 880 F = $ 4,040 U Variance Direct materials cost variance - Direct labor cost variance Formula (AQ - SQ)x SC (AQ - SQ)x SC Formula Direct materials efficiency variance Direct labor efficiency variance 395 F = $ 1,463 U Variance Actual VOH - (SC x AQ)2,020 F 798 U VOH cost variance VOH efficiency variance (AQ - SQ)x SC Formula Variance FOH cost variance Actual FOH-Budgeted FOH = $ 5,116 U FOH volume variance - Bugeted FOH-Allocated FOH = $ 1,134 F PrintDone

Explanation / Answer

Note: Favorable variances are deducted while unfavorable variances are added to the standard cost of goods sold to arrive at the actual cost of goods sold.

Bria Standard Cost Income Statement For the Month Ended July 31, 2016 Sales revenue (62900 x $54) 3396600 Cost of goods sold at standard (62900 x $0.98) 61642 Manufacturing cost variances: Direct materials cost variance -880 Direct materials efficiency variance -395 Direct labor cost variance 4040 Direct labor efficiency variance 1463 Variable overhead cost variance -2020 Variable overhead efficiency variance 798 Fixed overhead cost variance 5116 Fixed overhead volume variance -1134 Total manufacturing variances 6988 Cost of goods sold at actual 68630 Gross profit 3327970 Selling and administrative expenses 115000 Operating income (loss) 3212970

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