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a. Break down the material cost variance into different related variances: price variance, usage variance and volume variance. b. Break down the labor cost variance into different related variances: price variance, usage variance and volume variance. c. Identify favorable and adverse variances.

a. Break down the material cost variance into different related variances: price variance, usage variance and volume variance. b. Break down the labor cost variance into different related variances: price variance, usage variance and volume variance. c. Identify favorable and adverse variances.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer all parts of the question within 30 minutes. make sure all parts are answered else i will give negative ratings.
Minh Hoang manufactures product B. The company uses a standard costing system and sets the following standards for direct materials and labor (for a single product): Item Norm Unit price Cost Direct material 1kg 150,000 VND/kg 150,000VND/unit Direct labor 4 20,000 VND/hour 80,000 VND/unit hour Minh Hoang produced 100,000 products of A with the material consumption of 110,000kg with the unit price of 155,000 VND/kg. Actual labor is 410,000 hours with unit price of 25,000 VND/hour. Expected output is 105,000 products. Required: a. Break down the material cost variance into different related variances: price variance, usage variance and volume variance. b. Break down the labor cost variance into different related variances: price variance, usage variance and volume variance. c. Identify favorable and adverse variances.
Transcribed Image Text:Minh Hoang manufactures product B. The company uses a standard costing system and sets the following standards for direct materials and labor (for a single product): Item Norm Unit price Cost Direct material 1kg 150,000 VND/kg 150,000VND/unit Direct labor 4 20,000 VND/hour 80,000 VND/unit hour Minh Hoang produced 100,000 products of A with the material consumption of 110,000kg with the unit price of 155,000 VND/kg. Actual labor is 410,000 hours with unit price of 25,000 VND/hour. Expected output is 105,000 products. Required: a. Break down the material cost variance into different related variances: price variance, usage variance and volume variance. b. Break down the labor cost variance into different related variances: price variance, usage variance and volume variance. c. Identify favorable and adverse variances.
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