The standard cost card for a single unit of Robinson, Incorporated's products is shown below.Standard Quantity Standard Price/RateDirect materials:Direct labor:Variable overhead (based on labor hours):2.5 yards @0.5 hours @0.5 hours @$ 8.00 per yard$ 18.00 per hour$ 10.00 per hourBudgeted production for the month14,000 unitsActual production for the month13,500 unitsStandardUnit Cost$ 20.009.005.00Actual Costs Incurred to Produce 13,500 units:Direct Materials Purchased and UsedDirect Labor PaidVariable Overhead IncurredStandard Quantity35,100 yards @7,425 hours @7,425 hours @1. Compute the direct material, direct labor and variable overhead variances.Navigation:1. Use the Open Excel in New Tab button to launch this question.Standard Price/Rate$ 7.00 per yard$ 17.50 per hourTotal ActualCost$2,45,700$1,29,938$ 12.00 per hour$ 89,1002. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.☑Open Excel in new tab

Name: The standard cost card for a single unit of Robinson, Incorporated's
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Description: The standard cost card for a single unit of Robinson, Incorporated's products is shown below.Standard Quantity Standard Price/RateDirect materials:Direct labor:Variable overhead (based on labor hours):2.5 yards @0.5 hours @0.5 hours @$ 8.00 per yard

Direct materials variance refers to the difference between the actual cost incurred for materials…

Answered: 1. Compute the direct material, direct…

Business

Accounting

1. Compute the direct material, direct labor and variable overhead variances.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

The standard cost card for a single unit of Robinson, Incorporated's products is shown below.
Standard Quantity Standard Price/Rate
Direct materials:
Direct labor:
Variable overhead (based on labor hours):
2.5 yards @
0.5 hours @
0.5 hours @
$ 8.00 per yard
$ 18.00 per hour
$ 10.00 per hour
Budgeted production for the month
14,000 units
Actual production for the month
13,500 units
Standard
Unit Cost
$ 20.00
9.00
5.00
Actual Costs Incurred to Produce 13,500 units:
Direct Materials Purchased and Used
Direct Labor Paid
Variable Overhead Incurred
Standard Quantity
35,100 yards @
7,425 hours @
7,425 hours @
1. Compute the direct material, direct labor and variable overhead variances.
Navigation:
1. Use the Open Excel in New Tab button to launch this question.
Standard Price/Rate
$ 7.00 per yard
$ 17.50 per hour
Total Actual
Cost
$2,45,700
$1,29,938
$ 12.00 per hour
$ 89,100
2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
☑
Open Excel in new tab

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