A Excel Assignment #11-Variance Analysis Practice Exercise PZBR Co manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity 6 Direct materials (clay) 1.6 pounds Standard Price (Rate) $1.70 per pound Standard Unit Cost $2.72 7 Direct labor 1.6 hours $14.00 per hour 22.4 Variable manufacturing overhead (based 8 on direct labor hours) 1.6 hours $1.20 per hour 1.92 Fixed manufacturing overhead 9 ($312,500.00+125,000.00 units) 10 11 PZBR Co had the following actual results last year: 12 13 Number of units produced and sold 130,000 14 Number of pounds of clay purchased and used 228,200 15 Cost of clay $ 365,120 16 Number of labor hours worked 175,000 17 Direct labor cost $ 2,975,000 18 Variable overhead cost $ 250,000 19 Fixed overhead cost $ 330,000 20 21 Price Variance (aka Rate Variance or Spending Variance) 22 (AP-SP) AQ 23 AP Actual Price for one unit of input (e.g. one pound of material, one hour of labor, etc.) 24 SP Standard Price for one unit of input (e.g. one pound of material, one hour of labor, etc.) 25 AQ-Actual quantity of those inputs (e.g. pounds of materials or hours of labor) needed to produce the number of 26 27 Quantity Variance (aka Efficiency Variance or Usage Variance) 28 AQ-SQ) SP 29 AQ Actual quantity of those inputs (e.g. pounds of materials or hours of labor) needed to produce the number of 30 SQ Standard expected quantity of those inputs (e.g. pounds of materials or hours of labor) needed to produce the 31 SP Standard Price for one unit of input (e.g. one pound of material, one hour of labor, etc.) 32 2.5
A Excel Assignment #11-Variance Analysis Practice Exercise PZBR Co manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity 6 Direct materials (clay) 1.6 pounds Standard Price (Rate) $1.70 per pound Standard Unit Cost $2.72 7 Direct labor 1.6 hours $14.00 per hour 22.4 Variable manufacturing overhead (based 8 on direct labor hours) 1.6 hours $1.20 per hour 1.92 Fixed manufacturing overhead 9 ($312,500.00+125,000.00 units) 10 11 PZBR Co had the following actual results last year: 12 13 Number of units produced and sold 130,000 14 Number of pounds of clay purchased and used 228,200 15 Cost of clay $ 365,120 16 Number of labor hours worked 175,000 17 Direct labor cost $ 2,975,000 18 Variable overhead cost $ 250,000 19 Fixed overhead cost $ 330,000 20 21 Price Variance (aka Rate Variance or Spending Variance) 22 (AP-SP) AQ 23 AP Actual Price for one unit of input (e.g. one pound of material, one hour of labor, etc.) 24 SP Standard Price for one unit of input (e.g. one pound of material, one hour of labor, etc.) 25 AQ-Actual quantity of those inputs (e.g. pounds of materials or hours of labor) needed to produce the number of 26 27 Quantity Variance (aka Efficiency Variance or Usage Variance) 28 AQ-SQ) SP 29 AQ Actual quantity of those inputs (e.g. pounds of materials or hours of labor) needed to produce the number of 30 SQ Standard expected quantity of those inputs (e.g. pounds of materials or hours of labor) needed to produce the 31 SP Standard Price for one unit of input (e.g. one pound of material, one hour of labor, etc.) 32 2.5
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...
Related questions
Question
Transcribed Image Text:A
Excel Assignment #11-Variance Analysis Practice Exercise
PZBR Co manufactures custom-ordered commemorative beer steins. Its standard cost information follows:
Standard Quantity
6
Direct materials (clay)
1.6 pounds
Standard Price (Rate)
$1.70 per pound
Standard Unit
Cost
$2.72
7 Direct labor
1.6 hours
$14.00 per hour
22.4
Variable manufacturing overhead (based
8
on direct labor hours)
1.6 hours
$1.20 per hour
1.92
Fixed manufacturing overhead
9 ($312,500.00+125,000.00 units)
10
11 PZBR Co had the following actual results last year:
12
13 Number of units produced and sold
130,000
14 Number of pounds of clay purchased and used
228,200
15 Cost of clay
$
365,120
16 Number of labor hours worked
175,000
17 Direct labor cost
$
2,975,000
18 Variable overhead cost
$
250,000
19 Fixed overhead cost
$
330,000
20
21 Price Variance (aka Rate Variance or Spending Variance)
22 (AP-SP) AQ
23 AP Actual Price for one unit of input (e.g. one pound of material, one hour of labor, etc.)
24 SP Standard Price for one unit of input (e.g. one pound of material, one hour of labor, etc.)
25 AQ-Actual quantity of those inputs (e.g. pounds of materials or hours of labor) needed to produce the number of
26
27 Quantity Variance (aka Efficiency Variance or Usage Variance)
28 AQ-SQ) SP
29 AQ Actual quantity of those inputs (e.g. pounds of materials or hours of labor) needed to produce the number of
30 SQ Standard expected quantity of those inputs (e.g. pounds of materials or hours of labor) needed to produce the
31 SP Standard Price for one unit of input (e.g. one pound of material, one hour of labor, etc.)
32
2.5
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning