In order to test a hypothesis and prediction, controlled experiments are used. Controlled experiments involve several necessary components. An independent variable is usually manipulated by a researcher but does not change as a result of the experiment. The changes in the dependent variable may be caused by the experiment (and depend upon the independent variable). Graphs that depict the experimental data list the independent variable on the x-axis while the y-axis shows the dependent variable.
A commonly used mnemonic (memory device) to aid in distinguishing the characteristics of the types of variables is DRY MIX.
D = dependent variable (depends on the other) R = responding variable (one that changes) Y = y-axis on a graph M = manipulated variable (one that is changed by the researcher) I = independent variable
X = x-axis on a graph
The following sentence is a template to write an if/then statement to be used as a prediction:
If the independent variable is changed [increased, decreased, etc.], then the dependent variable will change in this way [increase, decrease, etc.]. Example: If the amount of available light increases, then plant growth will increase.
Discussion Questions:
Use the tools and examples just discussed to answer the questions about the experiment scenario described next. Jonah and Tessa noticed that some Leopard frogs by a local river had extra limbs. They decided to check various areas along the river to make more observations. They recorded their observations in their field notebooks. Jonah and Tessa performed a simple laboratory experiment with Leopard frog eggs and river water taken at various spots along the river. They noticed that adult frogs developing from eggs in water collected near an industrial park showed more deformities, but the deformities seemed to be different than those seen on frogs in the natural setting by the river.
In: Statistics and Probability
X Company's accountant uses account analysis to estimate costs for each month, with direct labor hours as the independent variable. In July, she did the following cost behavior analysis for three specific cost items:
| Cost Item | Total Cost | Variable Cost |
| Utilities | $364,632 | $267,728 |
| Rent | 329,000 | 0 |
| Supplies | 371,084 | 371,084 |
In July, direct labor hours were 11,600. If direct labor hours in November are expected to be 12,500, what are expected total costs for these three cost items in November?
In: Accounting
hint: for production of both X and Y
Questions: Suggestion: Use a scratch paper to solve all the variances first, then answer the questions.
1) DL - Total Variance
2) DL - Actual Cost (total)
3) A - Use (Quantity) Variance
4) A - Use (Quantity) Variance (Fav/Unf)
5) Rate (Labor Price) Variance (Fav/Unf)
6) A - Direct Material Total Variance
7) B - Use Variance (Fav/Unf)
8) A - Price Variance
9) A - Actual Cost (Total)
10) DL Total Variance (Fav/Unf)
11) DL - Efficiency (Labor Quantity) Variance (Fav/Unf)
12) DL - Flex budget
13) B - Price Variance (Fav/Unf)
14) B - Standard Cost (Total)
15) A - Standard Cost (Total)
16) DL Efficiency Variance (Labor Quantity)
17) B - Direct Material total variance
18) A - Price variance (Fav/Unf)
19) A - Flex budget
20) B - Direct Material Total Variance (Fav/ Unf)
21) B - Price variance
22) Rate variance (Labor price)
23) A - Direct material Total Variance ( Fav/Unf)
24) B - Use ( Quantity) variance
25) DL - Standard cost (Total)
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows:
| Standard Costs | Actual Costs | |
|---|---|---|
| Direct materials | 251,600 lbs. at $5.40 | 249,100 lbs. at $5.20 |
| Direct labor | 18,500 hrs. at $17.30 | 18,930 hrs. at $17.70 |
| Factory overhead | Rates per direct labor hr., | |
| based on 100% of normal | ||
| capacity of 19,310 direct | ||
| labor hrs.: | ||
| Variable cost, $4.80 | $87,910 variable cost | |
| Fixed cost, $7.60 | $146,756 fixed cost |
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using minus sign and an unfavorable variance as a positive number.
Direct Materials Price Variance
Direct Materials Quantity Variance
Total Direct Materials Cost Variance
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sig and an unfavorable variance as a positive number.
Direct Labor Rate Variance
Direct Labor Time Variance
Total Direct Labor Cost Variance
c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Variable factory overhead controllable variance
Fixed factory overhead volume variance
Total factory overhead cost variance
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 78,000 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 226,200 lbs. at $5.60 | 223,900 lbs. at $5.50 | |
| Direct labor | 19,500 hrs. at $18.20 | 19,950 hrs. at $18.50 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 20,350 direct | |||
| labor hrs.: | |||
| Variable cost, $4.80 | $92,660 variable cost | ||
| Fixed cost, $7.60 | $154,660 fixed cost | ||
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Material Price Variance | $ | |
| Direct Materials Quantity Variance | $ | |
| Total Direct Materials Cost Variance | $ |
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | |
| Direct Labor Time Variance | $ | |
| Total Direct Labor Cost Variance | $ |
c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Variable factory overhead controllable variance | $ | |
| Fixed factory overhead volume variance | $ | |
| Total factory overhead cost variance | $ |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 78,000 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 226,200 lbs. at $5.30 | 223,900 lbs. at $5.10 | |
| Direct labor | 19,500 hrs. at $16.60 | 19,950 hrs. at $17.00 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 20,350 direct | |||
| labor hrs.: | |||
| Variable cost, $4.30 | $83,010 variable cost | ||
| Fixed cost, $6.80 | $138,380 fixed cost | ||
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Material Price Variance | $ | |
| Direct Materials Quantity Variance | $ | |
| Total Direct Materials Cost Variance | $ |
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | |
| Direct Labor Time Variance | $ | |
| Total Direct Labor Cost Variance | $ |
c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Variable factory overhead controllable variance | $ | |
| Fixed factory overhead volume variance | $ | |
| Total factory overhead cost variance | $ |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 238,000 lbs. at $5.30 | 235,600 lbs. at $5.20 | |
| Direct labor | 17,500 hrs. at $16.40 | 17,900 hrs. at $16.80 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 18,260 direct | |||
| labor hrs.: | |||
| Variable cost, $4.10 | $71,030 variable cost | ||
| Fixed cost, $6.50 | $118,690 fixed cost | ||
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Material Price Variance | $ | |
| Direct Materials Quantity Variance | $ | |
| Total Direct Materials Cost Variance | $ |
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | |
| Direct Labor Time Variance | $ | |
| Total Direct Labor Cost Variance | $ |
c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Variable factory overhead controllable variance | $ | |
| Fixed factory overhead volume variance | $ | |
| Total factory overhead cost variance | $ |
Check My Work
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Standard Costs Actual Costs Direct materials 192,400 lbs. at $4.70 190,500 lbs. at $4.50 Direct labor 18,500 hrs. at $18.40 18,930 hrs. at $18.80 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $3.00 $54,950 variable cost Fixed cost, $4.70 $90,757 fixed cost Each unit requires 0.25 hour of direct labor. Required: a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Material Price Variance $ Direct Materials Quantity Variance $ Total Direct Materials Cost Variance $ b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance $ Direct Labor Time Variance $ Total Direct Labor Cost Variance $ c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead controllable variance $ Fixed factory overhead volume variance $ Total factory overhead cost variance $
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 78,000 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 249,600 lbs. at $5.40 | 247,100 lbs. at $5.30 | |
| Direct labor | 19,500 hrs. at $17.20 | 19,950 hrs. at $17.50 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 20,350 direct | |||
| labor hrs.: | |||
| Variable cost, $3.30 | $63,710 variable cost | ||
| Fixed cost, $5.20 | $105,820 fixed cost | ||
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Material Price Variance | $ | |
| Direct Materials Quantity Variance | $ | |
| Total Direct Materials Cost Variance | $ |
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct Labor Rate Variance | $ | |
| Direct Labor Time Variance | $ | |
| Total Direct Labor Cost Variance | $ |
c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Variable factory overhead controllable variance | $ | |
| Fixed factory overhead volume variance | $ | |
| Total factory overhead cost variance | $ |
In: Accounting
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,800 units of product were as follows:
| Standard Costs | Actual Costs | ||
| Direct materials | 8,800 lb. at $5.70 | 8,700 lb. at $5.50 | |
| Direct labor | 1,700 hrs. at $16.40 | 1,740 hrs. at $16.60 | |
| Factory overhead | Rates per direct labor hr., | ||
| based on 100% of normal | |||
| capacity of 1,770 direct | |||
| labor hrs.: | |||
| Variable cost, $3.30 | $5,550 variable cost | ||
| Fixed cost, $5.20 | $9,204 fixed cost | ||
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct materials price variance | $ | |
| Direct materials quantity variance | ||
| Total direct materials cost variance | $ |
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Direct labor rate variance | $ | |
| Direct labor time variance | ||
| Total direct labor cost variance | $ |
c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Variable factory overhead controllable variance | $ | |
| Fixed factory overhead volume variance | ||
| Total factory overhead cost variance | $ |
In: Accounting