Question

In: Accounting

The following information pertains to the standard costs and actual activity for Repine Company for September:...

The following information pertains to the standard costs and actual activity for Repine Company for September:

Standard cost per unit:

Direct materials. . . .. 4 units of material A x $6.00 per unit, 1 unit of material B x $8.00 per unit

Direct labor. . . . . . . 3 hours x $18.00 per hour

Activity for September

Materials purchased:

Material A . . . . . . . . . 6,750 units x $6.20 per unit

Material B . . . . . . . . . 1,650 units x $8.50 per unit

Materials used:

Material A . . . . . . . . . 6,225 units

Material B . . . . . . . . . 1,508 units

Direct labor used. . . .4,425 hours x $18.80 per hour

Production output. . ... 1,500 units

There were no beginning direct materials inventories.  

a) Determine the materials price and quantity variances.

b) Determine the labor rate and efficiency variances.

Solutions

Expert Solution

Answer:

a) Determine the materials price and quantity variances.

the materials price variances

Material Price variance

(Actual price- standard price)x Actual Quantity

Material Price variance

Material-A

( 6.20 -6 ) x 6,225

1245 Unfavorable

Material- B

( 8.50 - 8) x 1,508

754 Unfavorable

1999 Unfavorable

Material Price variance =1999 unfavorable

the materials quantity variances

Material Quantity variance

(Actual quantity- standard quantity)x standard price

Material Quantity variance

Material-A

( 6225- 6000) x 6

1350 Unfavorable

(standard quantity =1500*4=6000

Material- B

( 1508-1500 ) x 8

64 Unfavorable

(standard quantity =1500*1=1500

1414 Unfavorable

Material Quantity variance =1414 Unfavorable

________________________________________________________

b)

Determine the labor rate and efficiency variances.

labor rate variances.

Labor   rate variance

(Actual rate- standard rate)x Actual Hours

Labor   rate variance

(18.80 -18 ) x 4425

3540 Unfavorable

Labor   rate variance =3540 unfavorable

labor efficiency variances.

Labor   efficiency variance

(Actual Hours - standard   Hours )slandered rate

Labor   rate variance

(4425 -4500 ) x 18

1350 Favorable

standard   Hours =1500x3=4500

Labor   efficiency variance =1350 Favorable

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Tyler Company for September: Standard cost per unit Direct materials 4 units of material A × $2.00 per unit 1 unit of material B × $3.00 per unit Direct labor 3 hours × $8.00 per hour Activity for September Materials purchased Material A 2,600 units × $2.05 per unit Material B 700 units × $3.10 per unit Materials used Material A 2,250 units...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Repine Company for September: Standard cost per unit Direct materials 3 units of material A x $8.00 per unit 2 units of material B x $4.00 per unit Direct labor 2 hours x $15.00 per hour Activity for September Materials purchased Material A 7,000 units x $7.80 per unit Material B 4,800 units x $4.50 per unit Materials used Material A 6,430 units...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Repine Company for September: Standard cost per unit Direct materials 4 units of material A x $ 6.00 per unit 1 unit of material B x $ 8.00 per unit Direct labor 3 hours x $ 18.00 per hour Activity for September Materials purchased Material A 6,750 units x $ 6.20 per unit Material B 1,650 units x $ 8.50 per unit Materials...
The following information is for the standard and actual costs for the Happy Corporation Standard Costs:...
The following information is for the standard and actual costs for the Happy Corporation Standard Costs: Budgeted units of production - 16,000 (80% of capacity) Standard labor hours per unit - 4 Standard labor rate - $28 per hour Standard material per unit - 9 lbs Standard material cost - $ 14 per pound Standard variable overhead rate - $18 per labor hour Budgeted fixed overhead - $650,000 Fixed overhead rate is based on budgeted labor hours at 80% capacity....
The following information is for the standard and actual costs for Happy Corporation: Standard Costs: Budgeted...
The following information is for the standard and actual costs for Happy Corporation: Standard Costs: Budgeted units of production 16,000 [80% (or normal) capacity] Standard labor hours per unit 4 Standard labor rate $26 per hour Standard material per unit 8 lbs. Standard material cost $12 per pound Standard variable overhead rate $15 per labor hour Budgeted fixed overhead $640,000 Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity. Actual Costs: Actual production 16,500 units...
The following data pertains to activity and costs for two months at PQ Company: May June...
The following data pertains to activity and costs for two months at PQ Company: May June Activity level in units 9,000 10,000 Variable costs 36,000 ? Fixed costs 20,000 ? Mixed costs 14,000 ? Total costs 70,000 78,000 Assuming that these activity levels are within the relevant range, the mixed cost for June was: $18,000 $10,000 $15,500 $14,000 4 points    QUESTION 16 Production costs for The Widget Factory are listed below: july 15,000 $12,075 august 13,500 $10,800 sept. 11,500...
The following information pertains to Big Three Manufacturing Company for March 2018. Assume actual overhead equaled...
The following information pertains to Big Three Manufacturing Company for March 2018. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials $ 12,707 Work in process 17,429 Finished goods 9,476 March 31 Inventory balances Raw materials $ 11,843 Work in process 13,186 Finished goods 7,887 During March Costs of raw materials purchased $ 63,497 Costs of direct labor 20,288 Costs of manufacturing overhead 12,279 Sales revenues 193,247 The gross profit is $______________
The following information pertains to Alleigh’s Mannequins:                  Manufacturing costs             
The following information pertains to Alleigh’s Mannequins:                  Manufacturing costs                    P1,500,000                  Units manufactured                     30,000                  Units sold                                     29,500 units sold for P85 per unit                  Beginning inventory                    0 units What is the amount of ending finished goods inventory?
Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs...
Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 72,000      Test for contamination 128,000      Treat toxic waste 400,000      Operate pollution control equipment 320,000      2. Driver data Solvent X Solvent Y Design hours 1,600           800           Testing hours 2,800           3,600           Pounds of waste 300           7,700           Machine hours 1,600           30,400           3. Other production data Solvent X Solvent Y Nonenvironmental production costs $1,344,000      $1,952,000      Units produced 160,000      160,000      Required: 1. Calculate...
Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs...
Pinter Company had the following environmental activities and product information: 1. Environmental activity costs Activity Costs Design products (to reduce pollution) $ 118,800      Test for contamination 211,200      Treat toxic waste 660,000      Operate pollution control equipment 528,000      2. Driver data Solvent X Solvent Y Design hours 2,600           4,000           Testing hours 4,700           12,900           Pounds of waste 500           21,500           Machine hours 2,600           85,400           3. Other production data Solvent X Solvent Y Nonenvironmental production costs $3,080,000      $6,028,000      Units produced 440,000      440,000      Required: 1. Calculate...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT