Denominator activity level (direct labor hours) |53,800Budget fixed overhead cost (from the flexible budget430,400Actual fixed overhead Costs429,350Actual variable overhead cost155,660Required:1- Compute the direct material price variance for the year (indicate the effect of each variance byselecting "F" for favorable "U" for unfavorable and None for no effect zero variance:Materials Price VarianceMaterial Quantity varianceLabor rate variance• Labor efficiency variance• Variable overhead spending varianceVariable overhead efficiency variance• Fixed overhead budget variance• Fixed overhead volume variance Clarissa McWhirter vice president of Cyprus company was pleased to see a small variance on the incomestatement after the trouble the company had been having in controlling manufacturing cost she notedthat 38,110 overall manufacturing variance reported last period was well bellow the 3% limit that hadbeen set for variances the company produces and cells a single product the standard cost card for theproduct follows:Standard cost card per unitDirect materials 4 meter 3.58 per meter15.20Direct Labor 1.6 direct labor hours at 8.5 per direct labor hour13.6Variable overhead 1.6 direct labor hours at 2.8 per direct labor hour4.48Fixed overhead 1.6 direct labor hours at 8 per direct labor hour12.8Standard cost per unit46.08The following additional information is available for the year just completed• Company manufactured 33000 unit of product during the year• A total of 131000 meter of material was purchased during the year at a cost of 3.9 per meter allof this material used to manufacture the 33000 unit no beginning and ending inventoryThe company worked 55100 direct labor hours during the year at a cost of 8.40 per hourOverhead cost is applied to product on the basis of standard direct labor hours data relating tomanufacturing overhead cost follow:

Name: Denominator activity level (direct labor hours) |53,800Budget fixed o
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Description: Denominator activity level (direct labor hours) |53,800Budget fixed overhead cost (from the flexible budget430,400Actual fixed overhead Costs429,350Actual variable overhead cost155,660Required:1- Compute the direct material price variance for the ye

Overheads are the various indirect material, labour and other costs incurred during a manufacturing…

Business

Accounting

Compute the direct material price variance for the year (indicate the ef ecting "F" for favorable "U" for unfavorable and None for no effect zero • Materials Price Variance Material Quantity variance Labor rate variance Labor efficiency variance

Compute the direct material price variance for the year (indicate the ef ecting "F" for favorable "U" for unfavorable and None for no effect zero • Materials Price Variance Material Quantity variance Labor rate variance Labor efficiency variance

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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Which one of the following best describes the direct material price variance? O a. The difference between the standard quantity of material used at the standard cost per unit and the actual quantity of material used at the standard direct material cost per unit O b. The difference between the budgeted material cost and direct material cost according to the unflexed budget O c. The difference between the actual direct material cost and direct material cost according to the flexed budget O d. The difference between the actual cost of the material used and the actual quantity of material used at the standard direct material cost per unit O e. The difference between the actual cost of the material used and the standard quantity of material used at the actual direct material cost per unit
The direct labor rate variance is calculated by multiplying the standard hours that should have been worked for the actual output by the difference between the standard labor rate and the actual labor rate. O True O False
Complete the standard cost variance analysis
The standard price for direct materials is used in the calculation of which variances ? Neither the price variance nor the quantity variance The quantity variance but not the price variance Both the price variance and the quantity variance The price variance but not the quantity variance
Subject-Acounting
а. Standard Cost per Unit for Direct Materials and Direct Labor b. Direct Materials Price Variance Wrong Direct Materials Quantity Variance Wrong Total Direct Materials Cost Variance Wrong с. Direct Labor Rate Variance Wrong Direct Labor (Time) Efficiency Variance Wrong Total Direct Labor Cost Variance Wrong
Subject: acounting
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1 S 3. Compute the variable manufacturing overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Book Variable overhead sponding variance S Variable overhead efficiency variance 1 U 1 F Print 4. Compute the fixed overhead budget and volume variances. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (I.e., zero variance).) Fixed overhead budget variance $ Fixed overhead volumne variance $ 1U 0 Nono
Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places and round your answers to the nearest dollar, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance Direct labor time variance
The labor efficiency variance is the difference between the actual quantity of hours at the standard rate and the standard direct labor hours at the standard rate. A. True B. False
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