Acme Inc. has the following information available: Actual price paid for material $0.900 Standard price for material $0.625 Actual quantity purchased and used in production 90 Standard quantity for units produced 60 Actual labor rate per hour $16 Standard labor rate per hour $14 Actual hours 210 Standard hours for units produced 220 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 $fill in the blank 1 Material quantity variance $fill in the blank 3 Labor rate variance $fill in the blank 5 Labor efficiency variance $fill in the blank 7
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.
Acme Inc. has the following information available:
| Actual price paid for material | $0.900 |
| Standard price for material | $0.625 |
| Actual quantity purchased and used in production | 90 |
| Standard quantity for units produced | 60 |
| Actual labor rate per hour | $16 |
| Standard labor rate per hour | $14 |
| Actual hours | 210 |
| Standard hours for units produced | 220 |
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 | $fill in the blank 1 | |
| Material quantity variance | $fill in the blank 3 | |
| Labor rate variance | $fill in the blank 5 | |
| Labor efficiency variance | $fill in the blank 7 |
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