Question

In: Accounting

Orville Company’s standard and actual costs per unit are provided below for the most recent period....

Orville Company’s standard and actual costs per unit are provided below for the most recent period. During this time period 1200 units were actually produced.  

Standard

Actual

Materials:

     Standard: 2-6 metres at $2.30 per m.

$5.98

     Actual: 2.1 metres at $2.60 per m.

$5.46

Direct labour:

     Standard: 2.2 hrs. at $7.90 per hr.

17.38

     Actual: 1.7 hrs. at $8.50 per hr.

14.45

Variable overhead:

     Standard: 2.2 hrs. at $4.60 per hr.

10.12

     Actual: 1.7 hrs. at $4.20 per hr.

7.14

Total unit cost

$33.48

$27,05

For simplicity, assume there was no inventory of materials at the beginning or end of the period.

Required:

Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.

  1. Materials price variance                                                                         (3 marks)

  1. Materials quantity variance                                                                   (3 marks)
  1. Direct labour rate variance                                                                    (3 marks)
  1. Direct labour efficiency variance                                                            (3 marks)

  1. Variable overhead efficiency variance                                                    (3 marks)

                     6.        Variable overhead spending variance                                                                            (3

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Orville Company’s standard and actual costs per unit are provided below for the most recent period....
Orville Company’s standard and actual costs per unit are provided below for the most recent period. During this time period 1200 units were actually produced. Standard Actual Materials:      Standard: 2-6 metres at $2.30 per m. $5.98      Actual: 2.1 metres at $2.60 per m. $5.46 Direct labour:      Standard: 2.2 hrs. at $7.90 per hr. 17.38      Actual: 1.7 hrs. at $8.50 per hr. 14.45 Variable overhead:      Standard: 2.2 hrs. at $4.60 per hr. 10.12      Actual: 1.7...
Lido Company's standard and actual costs per unit for the most recent period, during which 400...
Lido Company's standard and actual costs per unit for the most recent period, during which 400 units were actually produced, are given below: Standard Actual Materials: Standard: 2 metres. at $1.50 per metre $3.00 Actual: 2.1 metres at $1.60 per metre $3.36 Direct labour: Standard: 1.5 hrs. at $6.00 per hr. 9.00 Actual: 1.4 hrs. at $6.50 per hr. 9.10 Variable overhead: Standard: 1.5 hrs. at $3.40 per hr. 5.10 Actual: 1.4 hrs. at $3.10 per hr. 4.34 Total unit...
BlayCo's standard and actual costs per unit for the most recent period, during which 600 units...
BlayCo's standard and actual costs per unit for the most recent period, during which 600 units were actually produced, are given below: Standard Quantity/Hours:   Materials- 4 feet per unit, Labor -unit 2 hours, Variable MOH- 2 hours per unit Standard Price/Rate: Materials $2.00 per feet, Labor-$8.00foot per hour, Variable MOH- $3.00 per hour Actual Quantity/Hours: Materials -1,000 feet, Labor-800 hours, Variable MOH- 800 hours Actual Total Cost: Materials-$1,500, Labor-$4,000, Variable MOH-$2,000 Required (show your work): From the foregoing information, compute...
Question 3 • Time: 30 minutes • Total: 18 marks Orville Company’s standard and actual costs...
Question 3 • Time: 30 minutes • Total: 18 marks Orville Company’s standard and actual costs per unit are provided below for the most recent period. During this time period 1300 units were actually produced. Standard Actual Materials: Standard: 2.6 metres at $2.30 per m. $5.98 Actual: 2.1 metres at $2.60 per m. $5.46 Direct labour: Standard: 2.2 hrs. at $7.90 per hr. 17.38 Actual: 1.7 hrs. at $8.50 per hr. 14.45 Variable overhead: Standard: 2.2 hrs. at $4.60 per...
Question 3 • Time: 30 minutes • Total: 18 marks Orville Company’s standard and actual costs...
Question 3 • Time: 30 minutes • Total: 18 marks Orville Company’s standard and actual costs per unit are provided below for the most recent period. During this time period 1400 units were actually produced. Standard Actual Materials:      Standard: 2.6 metres at $2.30 per m. $5.98      Actual: 2.1 metres at $2.60 per m. $5.46 Direct labour:      Standard: 2.2 hrs. at $7.90 per hr. 17.38      Actual: 1.7 hrs. at $8.50 per hr. 14.45 Variable overhead:      Standard:...
Miller Company’s most recent contribution format income statement is shown below:    Total Per Unit Sales...
Miller Company’s most recent contribution format income statement is shown below:    Total Per Unit Sales (33,000 units) $330,000 $10.00 Variable expenses 231,000 7.00 Contribution margin 99,000    $3.00 Fixed expenses    40,000 Net operating income $ 59,000 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) 1. The number of units sold increases by 16%. 2....
Standard costs for X Limited along with actual data for the last period is given below....
Standard costs for X Limited along with actual data for the last period is given below. Standard costs and revenues (per unit of product Alpha): Direct Materials: Rs. 4 kg of X at Rs. 20 per kg 80 2 kg of Y at Rs. 30 per kg 60 Direct Labour: 6 hours at Rs. 18 per hour 108 Variable Overheads: 6 direct labour hours at Rs. 4 per hour 24 Standard contribution margin 80 Standard Selling Price 352 Budgeted fixed...
Miller Company’s most recent contribution format income statement is shown below: Total Per Unit Sales (31,000...
Miller Company’s most recent contribution format income statement is shown below: Total Per Unit Sales (31,000 units) $217,000 $7.00 Variable expenses 124,000 4.00 Contribution margin 93,000 $3.00 Fixed expenses 48,000 Net operating income $ 45,000 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.)     1. The number of units sold increases by 10%. 2. The selling...
Miller Company’s most recent contribution format income statement is shown below: Total Per Unit Sales (32,000...
Miller Company’s most recent contribution format income statement is shown below: Total Per Unit Sales (32,000 units) $320,000 $10.00 Variable expenses 224,000 7.00 Contribution margin 96,000 $3.00 Fixed expenses 43,000 Net operating income $ 53,000 1. The number of units sold increases by 19%. 2. The selling price decreases by $1.20 per unit, and the number of units sold increases by 21%. 3. The selling price increases by $1.20 per unit, fixed expenses increase by $8,000, and the number of...
Kelly Company’s most recent contribution format income statement is shown below: Total Per Unit   Sales (50,000...
Kelly Company’s most recent contribution format income statement is shown below: Total Per Unit   Sales (50,000 units) $ 700,000 $ 14   Variable costs 300,000 6      Contribution margin 400,000 $ 8   Fixed costs 240,000      Operating income $ 160,000 Required: Prepare a new contribution format income statement with a per unit column under each of the following conditions (consider each case independently): The selling price increases by $1 per unit, fixed costs increase by $20,000, and the number of units...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT