Question
In: Accounting
Variance Part A The following standard costs per unit have been established by John, Inc.: Material...
Variance
Part A
The following standard costs per unit have been established by John, Inc.:
- Material (3 kilograms at $2 per kilogram) $ 6.00
- Direct labor (2 hours at $12 per hour) $ 24.00
During the month, John produced 1,100 units, which was 100 more units than planned.
They used 3,400 kilograms and 2,050 hours to do so.
Total actual materials spending was $6,460, while total actual labor spending was $27,675.
Required
Choose EITHER materials OR labor, and compute the following variances:
- Spending
- Efficiency
- Activity
Be sure to denote which you chose (materials or labor) and label each variance as favorable or unfavorable.
Part B
Meghan Company sells two products – Deluxe and Ultra.
The following information was gathered about the two products:
| Deluxe | Ultra | |
| Budgeted sales in units | 3,200 | 800 |
| Budgeted selling price (unit) | $300 | $850 |
| Actual sales in units | 3,500 | 1,500 |
| Actual selling price (unit) | $325 | $840 |
Required
Calculate the three main revenue variances for the Meghan product.
Be sure to label the variances by name, as well as “favorable” or “unfavorable.”
If there is insufficient information to calculate any of the variances, please denote that clearly.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The following materials standards have been established for a particular product: Standard quantity per unit of...
The following materials standards have been established for a
particular product: Standard quantity per unit of output 5.5 meters
Standard price $ 19.10 per meter The following data pertain to
operations concerning the product for the last month: Actual
materials purchased 9,100 meters Actual cost of materials purchased
$ 182,700 Actual materials used in production 8,600 meters Actual
output 1,540 units What is the materials price variance for the
month?
The following materials standards have been established for a particular product: Standard quantity per unit of...
The following materials standards have been established for a
particular product:
Standard quantity per unit of output
4.9
pounds
Standard price
$
13.70
per pound
The following data pertain to operations concerning the product
for the last month:
Actual materials purchased
5,550
pounds
Actual cost of materials purchased
$
63,380
Actual materials used in production
5,050
pounds
Actual output
750
units
The direct materials purchases variance is computed when the
materials are purchased.
What is the materials quantity variance for...
The following materials standards have been established for a particular product: Standard quantity per unit of...
The following materials standards have been established for a
particular product:
Standard quantity per unit of output
6.4
pounds
Standard price
$
15.20
per pound
The following data pertain to operations concerning the product
for the last month:
Actual materials purchased
7,800
pounds
Actual cost of materials purchased
$
64,880
Actual materials used in production
7,300
pounds
Actual output
900
units
The direct materials purchases variance is computed when the
materials are purchased.
What is the materials quantity variance for...
1a. the following materials standards have been established for a particular product: Standard quantity per unit...
1a. the following materials standards have been established for
a particular product:
Standard quantity per unit of output 4.4
pounds
Standard
price
$13.20
The following data pertain to operations concerning the product
for the last month:
Actual materials
purchased
4,800 pounds
Actual cost of
materials
$62,880
Actual materials used in production 4,300 pounds
Actual
output
700 units
What is the materials quantity variance for the month?
a.$6,550 U
b.$15,982 U
c.$6,600 U
d.$16,104 U
1b.The usual starting point for a...
The following labor standards have been established for a particular product: Standard labor-hours per unit of...
The following labor standards have been established for
a particular product:
Standard labor-hours per unit of output
9.0
hours
Standard labor rate
$
16.60
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours worked
9,600
hours
Actual total labor cost
$
156,480
Actual output
950
units
What is the labor rate variance for the month?
$17,115 U
$14,550 F
$2,880 F
$14,550 U
The following labor standards have been established for a particular product: Standard labor-hours per unit of...
The following labor standards have been established for a
particular product:
Standard labor-hours per unit of output
8.5
hours
Standard labor rate
$
12.30
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours worked
6,300
hours
Actual total labor cost
$
74,970
Actual output
800
units
What is the labor efficiency variance for the month?
The following labor standards have been established for a particular product: Standard labor hours per unit...
The following labor standards have been established for a
particular product:
Standard labor hours per unit of output
4.5
hours
Standard labor rate
$
19.70
per hour
The following data pertain to operations concerning the product
for the last month:
Actual hours worked
6,500
hours
Actual total labor cost
$
130,975
Actual output
1,400
units
Required:
a. What is the labor rate variance for the
month?
b. What is the labor efficiency
variance for the month?
(Indicate the effect of each...
The following labor standards have been established for a particular product: Standard labor hours per unit...
The following labor standards have been established for a
particular product:
Standard labor hours
per unit of output
4.9
hours
Standard labor
rate
$20.70
per hours
The following data pertain to operations concerning the product
for the last month:
Actual hours
worked
7,500
hours
Actual total labor
cost
$156,000
Actual output
1,500
units
Required:
a.
What is the labor rate variance for the month? (Input
the amount as a positive value. Leave no cells blank - be certain
to enter...
18. The following materials standards have been established for a particular product: Standard quantity per unit...
18.
The following materials standards have been established for a
particular product:
Standard quantity per unit of output
4.5
grams
Standard price
$12.00
per grams
The following data pertain to operations concerning the product
for the last month:
Actual materials purchased
3,400
grams
Actual cost of materials purchased
$ 39,610
Actual materials used in production
2,700
grams
Actual output
530
units
The direct materials purchases variance is computed when the
materials are purchased.
Materials price variance ________________________
Materials quantity variance______________________...
The following direct materials standards have been established for a particular product: Standard price per unit...
The following direct materials standards have been established
for a particular product:
Standard price per unit of output……………………. $4.00
Standard quantity……………………….………………….. 3 lbs.
The following data pertain to operations concerning the product
for the last month:
Actual products manufactured…………………………………..……… 2,000
Actual material purchased and used……..………………..………….6,500
lbs.
Actual price paid for materials…………………………………………….$3.80 per
lb.
HINT: Make a “goalpost” like we did in class to answer the
following questions. Make sure to indicate if your variance is
favorable or unfavorable.
a. What...
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