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Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Cost Total Actual Costs Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.) Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.) Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual Total $8.80 22.00 6.00 $36.80 $76,000 209,050 54,900 $333,950 REQUIRED Determine the following variances and indicate whether each is favorable or unfavorable: a. Materials price and efficiency variances b. Labor rate and efficiency variances c. Variable overhead spending and efficiency variances

Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Cost Total Actual Costs Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.) Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.) Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual Total $8.80 22.00 6.00 $36.80 $76,000 209,050 54,900 $333,950 REQUIRED Determine the following variances and indicate whether each is favorable or unfavorable: a. Materials price and efficiency variances b. Labor rate and efficiency variances c. Variable overhead spending and efficiency variances

FINANCIAL ACCOUNTING
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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P11-1A Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Cost Total Actual Costs Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.) Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.) Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual Total $8.80 22.00 6.00 $36.80 $76,000 209,050 54,900 $333,950 REQUIRED Determine the following variances and indicate whether each is favorable or unfavorable: a. Materials price and efficiency variances b. Labor rate and efficiency variances c. Variable overhead spending and efficiency variances
Transcribed Image Text:P11-1A Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Cost Total Actual Costs Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.) Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.) Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual Total $8.80 22.00 6.00 $36.80 $76,000 209,050 54,900 $333,950 REQUIRED Determine the following variances and indicate whether each is favorable or unfavorable: a. Materials price and efficiency variances b. Labor rate and efficiency variances c. Variable overhead spending and efficiency variances
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