The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours.

Material, Labor, and Variable Overhead Variances
The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours.

	Standard Units Costs
Direct material
Standard (2 lb. @ $16.00/lb.)	$32
Actual (4,200 lb. @ $16.80/lb.)		$70,560
Direct labor
Standard (0.5 hr. @ $31/hr.)	$15.50
Actual (950 hrs. @ $30/hr.)		28,500
Variable overhead
Standard (0.5 hr. @ $13/hr.)	$6.50
Actual	-	13,450
Total	$54	$112,510

Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

Materials Variances
Actual cost:
Split cost:
Standard cost:

Materials price
Materials efficiency

Labor Variances
Actual cost:
Split cost:
Standard cost:


Labor rate
Labor efficiency

Variable Overhead Variances
Actual cost:
Split cost:
Standard cost:

Variable overhead spending
Variable overhead efficiency

Solutions

Expert Solution

Material Variances
Actual cost (4200 x $16.80)	70560
Split cost (4200 x $16)	67200
Standard cost (2000 x 2 x $16)	64000
Materials price	3360	U
Materials efficiency	3200	U

Labor Variances
Actual cost (950 x $30)	28500
Split cost (950 x $31)	29450
Standard cost (2000 x 0.5 x $31)	31000
Labor rate	950	F
Labor efficiency	1550	F

Variable Overhead Variances
Actual cost	13450
Split cost (950 x $13)	12350
Standard cost (2000 x 0.5 x $13)	13000
Labor rate	1100	U
Labor efficiency	650	F

ekkarill92 answered 2 years ago

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