### Materials Variance Analysis **a-1. What is the materials quantity variance?** *Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).* - **The amount of the materials quantity variance:** [Input Field] [F/U/None Selection] --- **a-2. What is the materials price variance?** *Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).* - **The amount of the materials price variance:** [Input Field] [F/U/None Selection] --- These sections are designed for the analysis of variances in both materials quantity and price. Users are prompted to determine the variance amount and categorize the impact as favorable, unfavorable, or neutral, aiding in financial assessment and decision making. ## Chapter 10: Applying Excel ### Exhibit 10-1: Standard Cost Card **Inputs:** - **Direct materials** - **Standard Quantity:** 3.0 pounds - **Standard Price:** $4.00 per pound - **Direct labor** - **Standard Quantity:** 0.50 hours - **Standard Price:** $22.00 per hour - **Variable manufacturing overhead** - **Standard Quantity:** 0.50 hours - **Standard Price:** $6.00 per hour ### Actual Results: 1. **Actual output:** 2,030 units 2. **Actual variable manufacturing overhead cost:** $6,975 3. **Actual direct materials cost:** - **Actual Quantity:** 5,855 pounds - **Actual Price:** $4.20 per pound 4. **Actual direct labor cost:** - **Actual Quantity:** 1,125 hours - **Actual Price:** $22.10 per hour *(Enter a formula into each of the cells marked with a ? below)* ### Main Example: Chapter 10 #### Exhibit 10-4: Standard Cost Variance Analysis – Direct Materials 1. **Standard Quantity Allowed for the Actual Output, at Standard Price:** - **Formula:** ? pounds × $4.00 per pound = ? 2. **Actual Quantity of Input, at Standard Price:** - **Formula:** 5,855 pounds × $4.00 per pound = $23,420 3. **Actual Quantity of Input, at Actual Price:** - **Formula:** 5,855 pounds × $4.20 per pound = $24,591 - **Materials quantity variance:** $23,420 - ? = ? - **Materials price variance:** ? - $24,591 = ? - **Materials spending variance:** ? - ? = ? #### Exhibit 10-6: Standard Cost Variance Analysis – Direct Labor 1. **Standard Hours Allowed for the Actual Output, at Standard Rate:** - **Formula:** 1,125 hours × $22.00 per hour = $24,750 2. **Actual Hours of Input, at Actual Rate:** - **Formula:** 1,125 hours × $22.10 per hour = $24,863 - **Labor efficiency variance:** ? - ? = ? - **Labor

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please correctly complete the worksheet and answer those two questions fully!.
### Materials Variance Analysis

**a-1. What is the materials quantity variance?**  
*Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).*

- **The amount of the materials quantity variance:**  
  [Input Field] [F/U/None Selection]

---

**a-2. What is the materials price variance?**  
*Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).*

- **The amount of the materials price variance:**  
  [Input Field] [F/U/None Selection]

---

These sections are designed for the analysis of variances in both materials quantity and price. Users are prompted to determine the variance amount and categorize the impact as favorable, unfavorable, or neutral, aiding in financial assessment and decision making.
Transcribed Image Text:### Materials Variance Analysis **a-1. What is the materials quantity variance?** *Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).* - **The amount of the materials quantity variance:** [Input Field] [F/U/None Selection] --- **a-2. What is the materials price variance?** *Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).* - **The amount of the materials price variance:** [Input Field] [F/U/None Selection] --- These sections are designed for the analysis of variances in both materials quantity and price. Users are prompted to determine the variance amount and categorize the impact as favorable, unfavorable, or neutral, aiding in financial assessment and decision making.
## Chapter 10: Applying Excel

### Exhibit 10-1: Standard Cost Card
**Inputs:**
- **Direct materials**
  - **Standard Quantity:** 3.0 pounds
  - **Standard Price:** $4.00 per pound
- **Direct labor**
  - **Standard Quantity:** 0.50 hours
  - **Standard Price:** $22.00 per hour
- **Variable manufacturing overhead**
  - **Standard Quantity:** 0.50 hours
  - **Standard Price:** $6.00 per hour

### Actual Results:
1. **Actual output:** 2,030 units
2. **Actual variable manufacturing overhead cost:** $6,975
3. **Actual direct materials cost:** 
   - **Actual Quantity:** 5,855 pounds
   - **Actual Price:** $4.20 per pound
4. **Actual direct labor cost:** 
   - **Actual Quantity:** 1,125 hours
   - **Actual Price:** $22.10 per hour

*(Enter a formula into each of the cells marked with a ? below)*

### Main Example: Chapter 10

#### Exhibit 10-4: Standard Cost Variance Analysis – Direct Materials
1. **Standard Quantity Allowed for the Actual Output, at Standard Price:** 
   - **Formula:** ? pounds × $4.00 per pound = ?
2. **Actual Quantity of Input, at Standard Price:**
   - **Formula:** 5,855 pounds × $4.00 per pound = $23,420
3. **Actual Quantity of Input, at Actual Price:**
   - **Formula:** 5,855 pounds × $4.20 per pound = $24,591

- **Materials quantity variance:** $23,420 - ? = ?
- **Materials price variance:** ? - $24,591 = ?
- **Materials spending variance:** ? - ? = ?

#### Exhibit 10-6: Standard Cost Variance Analysis – Direct Labor
1. **Standard Hours Allowed for the Actual Output, at Standard Rate:**
   - **Formula:** 1,125 hours × $22.00 per hour = $24,750
2. **Actual Hours of Input, at Actual Rate:**
   - **Formula:** 1,125 hours × $22.10 per hour = $24,863

- **Labor efficiency variance:** ? - ? = ?
- **Labor
Transcribed Image Text:## Chapter 10: Applying Excel ### Exhibit 10-1: Standard Cost Card **Inputs:** - **Direct materials** - **Standard Quantity:** 3.0 pounds - **Standard Price:** $4.00 per pound - **Direct labor** - **Standard Quantity:** 0.50 hours - **Standard Price:** $22.00 per hour - **Variable manufacturing overhead** - **Standard Quantity:** 0.50 hours - **Standard Price:** $6.00 per hour ### Actual Results: 1. **Actual output:** 2,030 units 2. **Actual variable manufacturing overhead cost:** $6,975 3. **Actual direct materials cost:** - **Actual Quantity:** 5,855 pounds - **Actual Price:** $4.20 per pound 4. **Actual direct labor cost:** - **Actual Quantity:** 1,125 hours - **Actual Price:** $22.10 per hour *(Enter a formula into each of the cells marked with a ? below)* ### Main Example: Chapter 10 #### Exhibit 10-4: Standard Cost Variance Analysis – Direct Materials 1. **Standard Quantity Allowed for the Actual Output, at Standard Price:** - **Formula:** ? pounds × $4.00 per pound = ? 2. **Actual Quantity of Input, at Standard Price:** - **Formula:** 5,855 pounds × $4.00 per pound = $23,420 3. **Actual Quantity of Input, at Actual Price:** - **Formula:** 5,855 pounds × $4.20 per pound = $24,591 - **Materials quantity variance:** $23,420 - ? = ? - **Materials price variance:** ? - $24,591 = ? - **Materials spending variance:** ? - ? = ? #### Exhibit 10-6: Standard Cost Variance Analysis – Direct Labor 1. **Standard Hours Allowed for the Actual Output, at Standard Rate:** - **Formula:** 1,125 hours × $22.00 per hour = $24,750 2. **Actual Hours of Input, at Actual Rate:** - **Formula:** 1,125 hours × $22.10 per hour = $24,863 - **Labor efficiency variance:** ? - ? = ? - **Labor
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