Acme Inc. has the following information available: Actual price paid for material $1.000 Standard price for material $0.730 Actual quantity purchased and used in production 100 Standard quantity for units produced 80 Actual labor rate per hour $16 Standard labor rate per hour $14 Actual hours 200 Standard hours for units produced 230 Compute the material price and quantity, and the labor rate and efficiency variances. Round your answers to two decimal places. Enter all amounts as positive numbers. Material price variance $ Material quantity variance $ Labor rate variance $4 Labor efficiency variance $4
Acme Inc. has the following information available: Actual price paid for material $1.000 Standard price for material $0.730 Actual quantity purchased and used in production 100 Standard quantity for units produced 80 Actual labor rate per hour $16 Standard labor rate per hour $14 Actual hours 200 Standard hours for units produced 230 Compute the material price and quantity, and the labor rate and efficiency variances. Round your answers to two decimal places. Enter all amounts as positive numbers. Material price variance $ Material quantity variance $ Labor rate variance $4 Labor efficiency variance $4
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 12EA: Acme Inc. has the following information available: A. Compute the material price and quantity, and...
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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.
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![Acme Inc. has the following information available:
Actual price paid for material
$1.000
Standard price for material
$0.730
Actual quantity purchased and used in production
100
Standard quantity for units produced
80
Actual labor rate per hour
$16
Standard labor rate per hour
$14
Actual hours
200
Standard hours for units produced
230
Compute the material price and quantity, and the labor rate
and efficiency variances. Round your answers to two
decimal places. Enter all amounts as positive numbers.
Material price variance
Material quantity variance
Labor rate variance
$
Labor efficiency variance
$
Favorable
Unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91e8f9ba-ffa0-46c3-9224-20308fd6da84%2F09b2c6eb-a521-47af-bbbc-e959c75183a3%2Fd6q9p37_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Acme Inc. has the following information available:
Actual price paid for material
$1.000
Standard price for material
$0.730
Actual quantity purchased and used in production
100
Standard quantity for units produced
80
Actual labor rate per hour
$16
Standard labor rate per hour
$14
Actual hours
200
Standard hours for units produced
230
Compute the material price and quantity, and the labor rate
and efficiency variances. Round your answers to two
decimal places. Enter all amounts as positive numbers.
Material price variance
Material quantity variance
Labor rate variance
$
Labor efficiency variance
$
Favorable
Unfavorable
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