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In: Accounting

West and Jones Granite Corp uses a standard cost system for its single product. The following...

West and Jones Granite Corp uses a standard cost system for its single product. The following data are available: ACTUAL for the current year: Purchase of raw materials (5,200 sq ft at $11.80) $61,360 Raw materials used 4,800 sq ft Direct Labor costs (22,000 at $13.80) $303,600 Actual variable overhead cost $64,250 Units produced 5,820 units Standards per unit of product: Raw materials 1.0 sq ft at $10.70/sq ft Direct labor 3.8 hours at $13.50/hr Variable overhead $2.75 per direct labor hour Compute the following variances: 1. material variance (price and quantity) 2. labor variance (rate and efficiency) 3. variable overhead variance (spending and efficiency)

1- Using the attached problem, compute the material price variance.

3,750 U

5,720 U

6,600 U

10,914 F

2-

Using the attached problem, compute the material quantity variance.

3,750 U

5,720 U

6,600 U

10,914 F

3-

Using the attached problem, compute the labor rate variance.

3,750 U

5,720 U

6,600 U

10,914 F

4-

Using the attached problem, compute the labor efficiency variance.

319 F

1,566 F

3,750 U

6,600 U

5-

Using the attached problem, compute the total labor variance.

319 F

1,566 F

5,034 U

6,600 U

6-

Using the attached problem, compute the variable manufacturing overhead spending variance.

319 F

1,566 F

3,431 U

3,750 U

7-

Using the attached problem, compute the variable manufacturing overhead efficiency variance.

319 F

1,566 F

3,431 U

3,750 U

8-

Using the attached problem, compute the total variable manufacturing overhead variance.

319 F

1,566 F

3,431 U

3,750 U

Solutions

Expert Solution

1) Materials price variance
(Actual rate - standard rate)*Aq purchased
(11.80   - 10.70)*5200
5720 U
2) Material Qty variance
(AQ used - SQ allowed)*std rate
(4800      - 5820*1)*10.70
10,914 F
3) labor rate variance
(Actual rate - standard rate)*actual hours
(13.80-13.50)*22000
6600 U
4) labor efficiency variabce
(Actual hours - standard hrs allowed)*standard rate
(22000 - 5820*3.8)*13.5
1,566 F
5) total labor variance
5034 U
6) manufacturing overhead spending variance
(Actual rate - standard rate)*actual hours
(64250 -22000*2.75)
3750 U
7) manufacturing overhead efficiency variance
(Actual hours - standard hrs allowed)*standard rate
(22000 - 5820*3.8)*2.75
319 F
8) Variable manufacturing overhead variance
3431 U

ekkarill92 answered 1 year ago
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