The following table shows the standard cost for producing one of the most demand

Question

The following table shows the standard cost for producing one of the most demanded products company

When the budget was prepared master this was based on a planned production of 3,000 products. Actual results are:

• Current production was 2,000 products.
• were purchased and 14,000 ounces of direct materials used at a total cost of $ 8.400.
• The total direct labor hand was $ 33.550 and 1.100 hours invested.
• The variable overhead cost was $ 12.980.
• The fixed overhead cost was $ 14,000.

Requested:
Calculate the following variances and indicate whether they were favorable (F) or unfavorable (U):

1. Variances in direct material:
to. Direct materials price variance
b. Direct materials quantity variance
c. Direct materials spending variance

2. Variances in direct labor:
to. Direct labor rate variance
b. Direct labor efficiency variance
c. Direct labor spending variance

3. Variances in variable overhead costs:
to. Variable overhead rate variance
b. Variable overhead efficiency variance
c. Variable overhead spending variance

4. Variances in fixed overhead costs:
to. Fixed overhead spending variance
b. Fixed overhead volume variance

*** PLEASE INCLUDE ALL THE CALCULATION OF THE PROBLEMS, THAK :)

Manufacturing costs Standard Quantity Standard Price (rate) Standard Unit Cost Direct Materials Direct Labor Manufacturing Overhead Costs: 7 onzas $0.50 por onza $3.50 0.60 horas $30.00 por hora $18.00 Variable (basado en mano de0.60 horas $10.00 por hora $6.00 obra directa) Fixed $15,000/3,000 unidades = $5 por unidad $5.00 Standard manufacturing cost per unit $32.50

Explanation / Answer

1)

A) Materials price variance = (Actual price - Standard Price) *Actual Quantity

Materials price variance = (8400/14000 - 0.50)*14000

Materials price variance = $ 1400 Unfavorable

B). Materials usage/quantity variance = (Actual Quantity Used- Standard Quantity)Standard Price

Materials usage/quantity variance = (14000-7*2000)*0.50

Materials usage/quantity variance = None

c) Total Materials Spending variance = ( Actual price*Actual Quantity - Standard Price*Standard Quantity)

Total Materials Spending variance = (8400-0.5*7*2000)

Total Materials Spending variance = $ 1400 Unfavorable

2)

A) Labor rate variance = (Actual Rate-Standard Rate)*Actual Hour

Labor rate variance = (33550/1100 - 30)*1100

Labor rate variance = $ 550 Unfavorable

B) Labor efficiency variance = (Actual Hour-Standard Hour )Standard Rate

Labor efficiency variance = (1100-2000*0.6)*30

Labor efficiency variance = 3000 Favorable

c)

Direct labor spending variance= (Actual Rate*Actual Hour - Standard Rate* Standard Hour)

Direct labor spending variance = (33550 - 30*2000*0.6)

Direct labor spending variance = $ 2450 favorable

3)

A) Variable Overhead rate variance = (Actual Rate-Standard Rate)*Actual Hour

Variable Overhead rate variance =  (12980/1100 - 10)*1100

Variable Overhead rate variance = $ 1980 Unfavorable

B) Variable Overhead efficiency variance =(Actual Hour-Standard Hour )Standard Rate

Variable Overhead efficiency variance = (1100 - 2000*0.6)*10

Variable Overhead efficiency variance = 1000 Favorable

c) Variable overhead spending variance= (Actual Rate*Actual Hour - Standard Rate* Standard Hour)

Variable overhead spending variance = (12980 - 10*2000*0.6)

Variable overhead spending variance = $ 980 Unfavorable

4)

a)  Fixed overhead spending variance = Actual Fixed Overhead - Budgeted Fixed Overhead

Fixed overhead spending variance = 14000 - 15000

Fixed overhead spending variance = 1000 Favorable

b) Fixed overhead volume variance = ( Budgeted Fixed Overhead - Standard Unit * Standard Rate)

Fixed overhead volume variance = (15000 - 2000*5)

Fixed overhead volume variance = $ 5000 Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.