Acme Inc. has the following information available:Actual price paid for material$0.90Standard price for material$0.80Actual quantity purchased and used in production100Standard quantity for units produced130Actual labor rate per hour$14Standard labor rate per hour$17Actual hours200Standard hours for units produced210A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers.Material price variance$4Material quantity varianceLabor rate varianceLabor efficiency varianceB. What are some possible causes for this combination of favorable and unfavorable variances?%24%24%24

Name: Acme Inc. has the following information available:Actual price paid f
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Description: Acme Inc. has the following information available:Actual price paid for material$0.90Standard price for material$0.80Actual quantity purchased and used in production100Standard quantity for units produced130Actual labor rate per hour$14Standard labo

ln cost accounting variance is calculated in order to understand the deviations from the actual, it…

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Acme Inc. has the following information available: Actual price paid for material $0.90 Standard price for material $0.80 Actual quantity purchased and used in production 100 Standard quantity for units produced 130 Actual labor rate per hour $14 Standard labor rate per hour $17 Actual hours 200 210 Standard hours for units produced A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as Material price variance Material quantity variance Labor rate variance

Acme Inc. has the following information available: Actual price paid for material $0.90 Standard price for material $0.80 Actual quantity purchased and used in production 100 Standard quantity for units produced 130 Actual labor rate per hour $14 Standard labor rate per hour $17 Actual hours 200 210 Standard hours for units produced A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as Material price variance Material quantity variance Labor rate variance

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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Gauging the Favorableness of Variances When variances occur, they are described as being either favorable or unfavorable. When actual activity consumes more time or money than initially planned, an unfavorable variance exists. However, when actual activity consumes less time or money than initially planned, a favorable variance exists. Note that the terms favorable and unfavorable are used, rather than saying that a variance is good or bad, because until the cause of a variance is discovered, it is not clear whether a variance is either good or bad. Note: Use the minus sign to indicate negative values (when the budgeted amount is greater than the actual). If a company calculates that the actual cost for the actual hours worked by employees was $4,600,000, and the amount budgeted for those hours actually worked was $4,800,000, the actual cost for hours worked less the budgeted cost for hours worked is $ less than ✔ the budgeted cost at actual hours worked. What type of variance is this?…
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