Question

Standard cost information:

	Standard Quantity / Unit	Standard Price	Standard Cost / Unit
Direct Material	2	$0.75	$1.50
Direct Labor	5	$0.35	$1.75
Variable Overhead	3	$1.20	$3.60

Actual cost information:

	Total Actual Used	Total Actual Cost
Direct Material	19,500	$19,500
Direct Labor	34,500	$15,750
Variable Overhead	18,000	$22,000

Do not enter dollar signs or commas in the input boxes.
Round all Unit values to 2 decimal places. Round all other answers to the nearest whole number.
Enter all variances as positive values.

a) Complete Direct Materials variance analysis.

	Actual Results / Unit	Total Actual Results	Price Variance		AQ x SP		Quantity Variance		Total Standard Allowed	Standard Allowed / Unit
Units Produced	1.00	7,500			7,500.00				7,500	1.00
Materials / Unit Produced	Answer	Answer			Answer				Answer	Answer
Price/Unit	Answer				Answer					Answer
Total Cost	Answer	Answer	Answer	AnswerFU	Answer		Answer	AnswerFU	Answer	Answer
Total DM Variance					Answer	AnswerFU

b) Complete Direct Labor variance analysis.

	Actual Results / Unit	Total Actual Results	Labor rate variance		AQ x SP		DL efficiency variance		Total Standard Allowed	Standard Allowed / Unit
Units Produced	1.00	7,500			7,500.00				7,500	1.00
DLH / Unit Produced	Answer	Answer			Answer				Answer	Answer
DL Price/Unit	Answer				Answer					Answer
Total Cost	Answer	Answer	Answer	AnswerFU	Answer		Answer	AnswerFU	Answer	Answer
Total DL Variance					Answer	AnswerFU

c) Complete Variable Overhead variance analysis.

	Actual Results / Unit	Total Actual Results	VOH spending variance		AQ x SP		VOH efficiency variance		Total Standard Allowed	Standard Allowed / Unit
Units Produced	1.00	7,500			7,500.00				7,500	1.00
VOH / Unit Produced	Answer	Answer			Answer				Answer	Answer
VOH Price/Unit	Answer				Answer					Answer
Total Cost	Answer	Answer	Answer	AnswerFU	Answer		Answer	AnswerFU	Answer	Answer
Total VOH Variance					Answer	AnswerFU

Answer 1

	DATA FOR MATERIAL VARIANCE
	SQ	Standard Hours for Actual Output [AO x SQ p.u.]	[7,500 Units x 2 ]	15,000
	AQ	Actual Hours for Actual Output      [AO x AQ p.u.]	[Given]	19,500
	SR	Standard Rate per unit                           [TSC / TSQ]	[Given]	$0.75
	AR	Actual Rate per unit                               [TAC / TAQ]	[$19,500 / 19,500]	$1.00
a)	1)	Material Price/Spending Variance	[SR - AR] x AQ
			[$ 0.75- $ 1.00] x 19,500
			$ 4,875 [Unfavourable]
	2)	Material Usage/Efficency Variance	[SQ - AQ] x SR
			[15,000 - 19,500] x $ 0.75
			$ 3,375 [Unfavourable]
	3)	Total Material Cost Variance	[SQ x SR] - [AQ x AR]
			[15,000 x $ 0.75] - [19,500 x $ 1.00]
			[$ 11,250 - $ 19,500]
			$ 8,250 [Unfavourable]
	DATA FOR LABOUR VARIANCE
	SH	Standard Hours for Actual Output   [AQ x SH p.u.]	[7,500 Units x 5 hrs]	37,500
	AH	Actual Hours for Actual Output       [AQ x AH p.u.]	[Given]	34,500
	SR	Standard Rate per Hour                            [TSC / TSH]	[Given]	$0.3500
	AR	Actual Rate per Hour                                [TAC / TAH]	[$15,750 / 34,500]	$0.4565
b)	1)	Labour Rate/Spending Variance	[SR - AR] x AH
			[$ 0.35 - $ 0.4565] x 34,500
			$ 3,675 [Unfavourable]
	2)	Labour Efficency Variance	[SH - AH] x SR
			[37,500 - 34,500] x $ 0.35
			$ 1,050 [Favourable]
	3)	Total Labour Cost Variance	[SH x SR] - [AH x AR]
			[37,500 x $ 0.35] - [34,500 x $ 0.4565]
			[$ 13,125 - $ 15,750]
			$ 2,625 [Unfavourable]
	DATA FOR VARIABLE OVERHEAD VARIANCE
	SH	Standard Hours for Actual Output   [AQ x SH p.u.]	[7,500 Units x 3 hrs]	22,500
	AH	Actual Hours for Actual Output       [AQ x AH p.u.]	[Given]	18,000
	SR	Standard Rate per Hour                            [TSC / TSH]	[Given]	$1.2000
	AR	Actual Rate per Hour                                [TAC / TAH]	[$22,000 / 18,000]	$1.2222
c)	1)	Variable OH Rate/Spending Variance	[SR - AR] x AH
			[$ 1.20 - $ 1.2222] x 18,000
			$ 400 [Unfavourable]
	2)	Variable OH Efficency Variance	[SH - AH] x SR
			[22,500 - 18,000] x $ 1.20
			$ 5,400 [Favourable]
	3)	Total Variable OH Cost Variance	[SH x SR] - [AH x AR]
			[22,500 x $ 1.20] - [18,000 x $ 1.2222]
			[$ 27,000 - $ 22,000]
			$ 5,000 [Favourable]