Ayayai Company has developed the following standard costs for its product for 2022: Product A Cost Component Direct materials Direct labor Manufacturing overhead . . . . Actual results for 2022 are as follows: . . Actual results for 2022 are as follows: . Standard Quantity 4 pounds 3 hours 3 hours The company expected to produce 32,300 units of Product A in 2022 using 96,900 direct labor hours. (a) Materials Quantity Variance (d) (b) Total Direct Labor Variance AYAYAICOMPANY Standard Cost Card (c) Direct Labor Quantity Variance $ $ Total Overhead Variance x Standard Price Direct Materials Price Variance $ $3 8 33,360 units of Product A were produced. Actual direct labor costs were $802.780 for 97,900 direct labor hours worked. Actual direct materials purchased and used during the year cost $378,125 for 137,500 pounds. $ 4 Standard Cost 33,360 units of Product A were produced. Actual direct labor costs were $802,780 for 97.900 direct labor hours worked. Actual direct materials purchased and used during the year cost $378,125 for 137,500 pounds. Actual variable overhead incurred was $168,000 and actual fixed overhead incurred was $220,000. Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable unfavorable. $12 24 12 $48
Ayayai Company has developed the following standard costs for its product for 2022: Product A Cost Component Direct materials Direct labor Manufacturing overhead . . . . Actual results for 2022 are as follows: . . Actual results for 2022 are as follows: . Standard Quantity 4 pounds 3 hours 3 hours The company expected to produce 32,300 units of Product A in 2022 using 96,900 direct labor hours. (a) Materials Quantity Variance (d) (b) Total Direct Labor Variance AYAYAICOMPANY Standard Cost Card (c) Direct Labor Quantity Variance $ $ Total Overhead Variance x Standard Price Direct Materials Price Variance $ $3 8 33,360 units of Product A were produced. Actual direct labor costs were $802.780 for 97,900 direct labor hours worked. Actual direct materials purchased and used during the year cost $378,125 for 137,500 pounds. $ 4 Standard Cost 33,360 units of Product A were produced. Actual direct labor costs were $802,780 for 97.900 direct labor hours worked. Actual direct materials purchased and used during the year cost $378,125 for 137,500 pounds. Actual variable overhead incurred was $168,000 and actual fixed overhead incurred was $220,000. Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable unfavorable. $12 24 12 $48
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...
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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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![Ayayai Company has developed the following standard costs for its product for 2022:
Product A
Cost Component
Direct materials
Direct labor
Manufacturing overhead
.
.
.
.
.
Actual results for 2022 are as follows:
.
Actual results for 2022 are as follows:
.
Standard Quantity
4 pounds
3 hours
The company expected to produce 32,300 units of Product A in 2022 using 96,900 direct labor hours.
3 hours
(a) Materials Quantity Variance
(d)
(b) Total Direct Labor Variance
AYAYAICOMPANY
Standard Cost Card
(c) Direct Labor Quantity Variance $
Total Overhead Variance
$
x Standard Price
Direct Materials Price Variance $
$3
8
33,360 units of Product A were produced.
Actual direct labor costs were $802.780 for 97,900 direct labor hours worked.
Actual direct materials purchased and used during the year cost $378,125 for 137,500 pounds.
$
4
Standard Cost
33,360 units of Product A were produced.
Actual direct labor costs were $802,780 for 97.900 direct labor hours worked.
Actual direct materials purchased and used during the year cost $378,125 for 137,500 pounds.
Actual variable overhead incurred was $168,000 and actual fixed overhead incurred was $220,000.
Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable or
unfavorable.
$12
24
12
$48](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb6340f84-96c2-4eb9-8f94-e04a8abcb043%2Fed692cea-acaa-472f-9976-acbec8c853c7%2Fweeez8e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ayayai Company has developed the following standard costs for its product for 2022:
Product A
Cost Component
Direct materials
Direct labor
Manufacturing overhead
.
.
.
.
.
Actual results for 2022 are as follows:
.
Actual results for 2022 are as follows:
.
Standard Quantity
4 pounds
3 hours
The company expected to produce 32,300 units of Product A in 2022 using 96,900 direct labor hours.
3 hours
(a) Materials Quantity Variance
(d)
(b) Total Direct Labor Variance
AYAYAICOMPANY
Standard Cost Card
(c) Direct Labor Quantity Variance $
Total Overhead Variance
$
x Standard Price
Direct Materials Price Variance $
$3
8
33,360 units of Product A were produced.
Actual direct labor costs were $802.780 for 97,900 direct labor hours worked.
Actual direct materials purchased and used during the year cost $378,125 for 137,500 pounds.
$
4
Standard Cost
33,360 units of Product A were produced.
Actual direct labor costs were $802,780 for 97.900 direct labor hours worked.
Actual direct materials purchased and used during the year cost $378,125 for 137,500 pounds.
Actual variable overhead incurred was $168,000 and actual fixed overhead incurred was $220,000.
Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable or
unfavorable.
$12
24
12
$48
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Step 1: Introduce to material and labor variance
VIEWStep 2: Working for standard material quantity and standard labor hours
VIEWStep 3: Working for actual material price and actual labor rate
VIEWStep 4: Working for material variance
VIEWStep 5: Working for direct labor variance
VIEWStep 6: Working for total overhead variance
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