Direct Materials Labor Variance **Direct Materials Variances**Bellingham Company produces a product that requires six standard pounds per unit. The standard price is $10 per pound. If 2,500 units used 14,500 pounds, which were purchased at $10.20 per pound, what are the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.- a. Direct materials price variance: **$2,900** (Unfavorable)- b. Direct materials quantity variance: **$5,000** (Unfavorable)- c. Direct materials cost variance: **$132,910** (Favorable)**Direct Labor Variances**Bellingham Company produces a product that requires 5 standard direct labor hours per unit at a standard hourly rate of $13.00 per hour. If 3,600 units used 17,500 hours at an hourly rate of $13.39 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.- a. Direct labor rate variance: **$6,825** (Unfavorable)- b. Direct labor time variance: **$6,500** (Favorable)- c. Direct labor cost variance: **$325** (Unfavorable)

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Description: Direct Materials Labor Variance **Direct Materials Variances**Bellingham Company produces a product that requires six standard pounds per unit. The standard price is $10 per pound. If 2,500 units used 14,500 pounds, which were purchased at $10.20 per

The calculation of direct materials price, quantity, and cost variance is as follows: The resultant…

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Bellingham Company produces a product that requires six standard pounds per unit. The standard price is $10 per pound. IF 2,500 units used 14,500 pounds, which were purchased at $10.2 per pound, what is the direct materials (a) price variance, (b quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Favorable X Unfavorable X Favorable v a. Direct materials price variance -2,900 x b. Direct materials quantity variance 5,000 x c. Direct materials cost variance 132,910 x Direct Labor Variances Bellingham Company produces a product that requires 5 standard direct labor hours per unit at a standard hourly rate of $13.00 per hour. If 3,600 units used 17,500 hours at an hourly rate of $13.39 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance 6,825 Unfavorable v b. Direct labor time variance 6,500 Favorable v c. Direct labor cost variance 325 Unfavorable v

Bellingham Company produces a product that requires six standard pounds per unit. The standard price is $10 per pound. IF 2,500 units used 14,500 pounds, which were purchased at $10.2 per pound, what is the direct materials (a) price variance, (b quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Favorable X Unfavorable X Favorable v a. Direct materials price variance -2,900 x b. Direct materials quantity variance 5,000 x c. Direct materials cost variance 132,910 x Direct Labor Variances Bellingham Company produces a product that requires 5 standard direct labor hours per unit at a standard hourly rate of $13.00 per hour. If 3,600 units used 17,500 hours at an hourly rate of $13.39 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance 6,825 Unfavorable v b. Direct labor time variance 6,500 Favorable v c. Direct labor cost variance 325 Unfavorable v

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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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Direct Materials Labor Variance

**Direct Materials Variances**

Bellingham Company produces a product that requires six standard pounds per unit. The standard price is $10 per pound. If 2,500 units used 14,500 pounds, which were purchased at $10.20 per pound, what are the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

- a. Direct materials price variance: **$2,900** (Unfavorable)
- b. Direct materials quantity variance: **$5,000** (Unfavorable)
- c. Direct materials cost variance: **$132,910** (Favorable)

**Direct Labor Variances**

Bellingham Company produces a product that requires 5 standard direct labor hours per unit at a standard hourly rate of $13.00 per hour. If 3,600 units used 17,500 hours at an hourly rate of $13.39 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

- a. Direct labor rate variance: **$6,825** (Unfavorable)
- b. Direct labor time variance: **$6,500** (Favorable)
- c. Direct labor cost variance: **$325** (Unfavorable)

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