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Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity...
Computation of Variable Cost Variances
The following information pertains to the standard costs and actual
activity for Repine Company for September:
| Standard cost per unit | |
| Direct materials | 3 units of material A x $8.00 per unit |
| 2 units of material B x $4.00 per unit | |
| Direct labor | 2 hours x $15.00 per hour |
| Activity for September | |
| Materials purchased | |
| Material A | 7,000 units x $7.80 per unit |
| Material B | 4,800 units x $4.50 per unit |
| Materials used | |
| Material A | 6,430 units |
| Material B | 3,950 units |
| Direct labor used | 4,100 hours x $15.50 per hour |
| Production output | 2,000 units |
There were no beginning direct materials inventories.
(a) Determine the materials price and quantity variances.
| Material A | Material B | |||
|---|---|---|---|---|
| Materials price variance | Answer | AnswerFU | Answer | AnswerFU |
| Materials quantity variance | Answer | AnswerFU | Answer | AnswerFU |
(b) Determine the labor rate and efficiency variances.
| Labor rate variance | Answer | AnswerFU |
| Labor efficiency variance | Answer | AnswerFU |
Please answer all parts of the question.
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ekkarill92 answered 2 years agoRelated Solutions
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity...
Computation of Variable Cost Variances
The following information pertains to the standard costs and actual
activity for Tyler Company for September:
Standard cost per unit
Direct materials
4 units of material A × $2.00 per
unit
1 unit of material B × $3.00 per
unit
Direct labor
3 hours × $8.00 per hour
Activity for September
Materials purchased
Material A
2,600 units × $2.05 per unit
Material B
700 units × $3.10 per unit
Materials used
Material A
2,250 units...
Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity...
Computation of Variable Cost Variances The following information
pertains to the standard costs and actual activity for Repine
Company for September: Standard cost per unit Direct materials 4
units of material A x $ 6.00 per unit
1 unit of material B x $ 8.00 per unit
Direct labor 3 hours x $ 18.00 per hour
Activity for September
Materials purchased
Material A 6,750 units x $ 6.20 per unit
Material B 1,650 units x $ 8.50 per unit
Materials...
The following information pertains to the standard costs and actual activity for Repine Company for September:...
The following information pertains to the standard costs and
actual activity for Repine Company for September:
Standard cost per unit:
Direct materials. . . .. 4 units of material A x $6.00 per unit,
1 unit of material B x $8.00 per unit
Direct labor. . . . . . . 3 hours x $18.00 per hour
Activity for September
Materials purchased:
Material A . . . . . . . . . 6,750 units x $6.20 per unit
Material...
The following information is for the standard and actual costs for the Happy Corporation Standard Costs:...
The following information is for the standard and actual
costs for the Happy Corporation
Standard Costs:
Budgeted units of production - 16,000 (80% of
capacity)
Standard labor hours per unit - 4
Standard labor rate - $28 per hour
Standard material per unit - 9 lbs
Standard material cost - $ 14 per pound
Standard variable overhead rate - $18 per labor
hour
Budgeted fixed overhead - $650,000
Fixed overhead rate is based on budgeted labor hours at
80% capacity....
Mastery Problem: Manufacturing Cost Variance (Actual Costs Compared to Standard Costs) Manufacturing cost variances may come...
Mastery Problem: Manufacturing Cost Variance (Actual
Costs Compared to Standard Costs)
Manufacturing cost variances may come from material costs that
are higher or lower than expected, material usage that is not what
was expected, higher or lower labor costs than expected, or more or
less time spent to produce an item than expected. Overhead cost and
volume variances are another cause for costs to be higher or lower
than what was expected. The total manufacturing variance can be
broken down...
The following information is for the standard and actual costs for Happy Corporation: Standard Costs: Budgeted...
The following information is for the standard and actual costs
for Happy Corporation:
Standard Costs:
Budgeted units of production 16,000 [80% (or normal)
capacity]
Standard labor hours per unit 4
Standard labor rate $26 per hour
Standard material per unit 8 lbs.
Standard material cost $12 per pound
Standard variable overhead rate $15 per labor hour
Budgeted fixed overhead $640,000
Fixed overhead rate is based on budgeted labor hours at 80% (or
normal) capacity.
Actual Costs:
Actual production 16,500 units...
Material and Labor Variances The following actual and standard cost data for direct material and direct...
Material and Labor Variances
The following actual and standard cost data for direct material and
direct labor relate to the production of 2,000 units of a
product:
Actual Costs
Standard Costs
Direct material
4,200
lbs. @
$4.90
4,000
lbs. @
$5.20
Direct labor
5,700
hrs. @
$9.30
6,000
hrs. @
$9.50
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...
The difference between the actual variable overhead cost and the standard variable overhead cost for the...
The difference between the actual variable overhead cost and the
standard variable overhead cost for the actual volume of the
overhead activity base is known as the
Select one:
A. variable overhead efficiency variance.
B. fixed overhead budget variance.
C. variable overhead spending variance.
D. fixed overhead volume variance.
Question 2 – Chap. 10 Material and Labor Variances The following actual and standard cost data...
Question 2 – Chap. 10
Material and Labor Variances
The following actual and standard cost data for direct material and
direct labor relate to the production of 2,000 units of a
product:
Actual Costs
Standard Costs
Direct material
17,550
lbs. @
$5.30
18000
lbs. @
$5.10
Direct labor
27,900
hrs. @
$8.40
27,000
hrs. @
$8.70
Determine the following variances:
Do not use negative signs with any of your answers. Next to each
variance answer, select either "F" for Favorable...
The following information pertains to each of the company’s first two years of operations: Variable costs...
The following information pertains to each of the company’s
first two years of operations:
Variable costs per unit:
Manufacturing:
Direct materials
$
25
Direct labor
$
12
Variable manufacturing overhead
$
4
Variable selling and administrative
$
3
Fixed costs per year:
Fixed manufacturing overhead
$
320,000
Fixed selling and administrative expenses
$
60,000
During its first year of operations, Walsh produced 50,000
units and sold 40,000 units.
During its second year of operations, it produced 40,000 units
and sold...
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