Question

Standard Costing Questions

1. Price var = 25 fav , quant var = 19 unf . Find the total var (indicate dollar amount and fav or unf)

2. Stand hrs x Stand rate = 300 ; Act hrs X Act rate= 350 ; price var= 60 unfav. Find the quant variance ( indicate $ amount and if fav or unf)

3.     Standard per suit is 8 hours @ 8 per hour . Made 10 suits. Used 85 hours @ 7 per hour

   36A) find the quant var (indicate $ amount and if fav or unf)    

   36B) find the rate var ( indicate $ amount and if fav or unf)

4. Standard per suit is 10 lbs material @ 10 per lb. Made 10 suits

   Used 95 lbs , bought 107 lbs @ 12 per lb. Find the quant variance (indicate $ amount and fav or unf)

Answer 1

1. Price var = 25 fav , quant var = 19 unf . Find the total var (indicate dollar amount and fav or unf)

Price Variance = $7 Fav

Quantity Varince = $19 Unf

Total Variance = $7 Fav - $19 Unf = $12 Unf

1. Stand hrs x Stand rate = 300 ; Act hrs X Act rate= 350 ; price var= 60 unfav. Find the quant variance ( indicate $ amount and if fav or unf)

Quantity Variance = Total Variance – Price variance

Total Variance = (Stand hrs x Stand rate) – (Act hrs X Act rate)

       = $300 - $350 = $50 Unf

Quantity variance = $50 Unf - $60 Unf = $10 Fav

(36A) find the quant var (indicate $ amount and if fav or unf)    

Quantity Variance = (Actual hours – Standard hours) * Standard rate

Standard hours = 10 suits * 8 hours = 80 hours

Variance = (85 – 80) * $8 = $40 Unf

(36B) find the rate var ( indicate $ amount and if fav or unf)

(Actual rate – Standard rate) * Actual hours

($7 - $8) * 85 = $85 Fav

1. Standard per suit is 10 lbs material @ 10 per lb. Made 10 suits

   Used 95 lbs , bought 107 lbs @ 12 per lb. Find the quant variance (indicate $ amount and fav or unf)

Quantity Variance = (Actual lbs used – Standard lbs) * Standard rate

Standard lbs = 10 lbs * 10 suits = 100 lbs

       = (95 – 100) * $10 = $50 Fav