Direct materials: standard: 1.80 feet at $2.80 per foot Actual: 1.75 feet at $3.00 per foot Direct labor: standard: 0.90 hours at $17.00 per hour Actual: 0.95 hours at $16.40 per hour Variable overhead: standard: 0.90 hours at $7.40 per hour Actual: 0.95 hours at $7.00 per hour b. Labor rate and efficiency varlances. c. Varlable overhead rate and efficiency variances. Required 1 Materials: Total cost per unit $ 0.48 Excess of actual cost over standard cost per unit The production superintendent was pleased when he saw this report and commented: "This $0.48 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Complete this question by entering your answers in the tabs below. Price variance Quantity variance Actual production for the month was 14,500 units. Varlable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending Inventories of materials. Required: 1. Compute the following variances for May: a. Materials price and quantity varlances. Labor: Rate variance Efficiency variance Standard Cost per Unit $ 5.04 2. How much of the $0.48 excess unit cost is traceable to each of the variances computed In requirement 1. 3. How much of the $0.48 excess unit cost is traceable to apparent Inefficient use of labor time? Variable overhead: Rate variance 15.30 Efficiency variance Excess of actual over standard cost per unit 6.66 Required 2 Required 3 How much of the $0.48 excess unit cost is traceable to each of the variances computed in requirement 1. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your answers to 2 decimal places.) U F $ 27.00 0.57 F 0.85 U 0.38 F 0.37 U Actual Cost per Unit S $ 5.25 0.00 U 15.58 0.28 U 6.65 $ 27.48 0.01 F 0.27 U
Direct materials: standard: 1.80 feet at $2.80 per foot Actual: 1.75 feet at $3.00 per foot Direct labor: standard: 0.90 hours at $17.00 per hour Actual: 0.95 hours at $16.40 per hour Variable overhead: standard: 0.90 hours at $7.40 per hour Actual: 0.95 hours at $7.00 per hour b. Labor rate and efficiency varlances. c. Varlable overhead rate and efficiency variances. Required 1 Materials: Total cost per unit $ 0.48 Excess of actual cost over standard cost per unit The production superintendent was pleased when he saw this report and commented: "This $0.48 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Complete this question by entering your answers in the tabs below. Price variance Quantity variance Actual production for the month was 14,500 units. Varlable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending Inventories of materials. Required: 1. Compute the following variances for May: a. Materials price and quantity varlances. Labor: Rate variance Efficiency variance Standard Cost per Unit $ 5.04 2. How much of the $0.48 excess unit cost is traceable to each of the variances computed In requirement 1. 3. How much of the $0.48 excess unit cost is traceable to apparent Inefficient use of labor time? Variable overhead: Rate variance 15.30 Efficiency variance Excess of actual over standard cost per unit 6.66 Required 2 Required 3 How much of the $0.48 excess unit cost is traceable to each of the variances computed in requirement 1. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your answers to 2 decimal places.) U F $ 27.00 0.57 F 0.85 U 0.38 F 0.37 U Actual Cost per Unit S $ 5.25 0.00 U 15.58 0.28 U 6.65 $ 27.48 0.01 F 0.27 U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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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Transcribed Image Text:Direct materials:
standard: 1.80 feet at $2.80 per foot
Actual: 1.75 feet at $3.00 per foot
Direct labor:
standard: 0.90 hours at $17.00 per hour
Actual: 0.95 hours at $16.40 per hour
Variable overhead:
standard: 0.90 hours at $7.40 per hour
Actual: 0.95 hours at $7.00 per hour
Total cost per unit
Excess of actual cost over standard cost per unit
The production superintendent was pleased when he saw this report and commented: "This $0.48 excess cost is well within the 5
percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product."
Required 1
Materials:
Required 2
Complete this question by entering your answers in the tabs below.
Price variance
Quantity variance
Labor:
Rate variance
Efficiency variance
Actual production for the month was 14,500 units. Variable overhead cost is assigned to products on the basis of direct labor-hours.
There were no beginning or ending Inventories of materials.
Required:
1. Compute the following variances for May:
a. Materials price and quantity variances.
b. Labor rate and efficiency variances.
c. Variable overhead rate and efficiency varlances.
Required 3
Variable overhead:
Rate variance
Standard Cost
per Unit
2. How much of the $0.48 excess unit cost is traceable to each of the variances computed in requirement 1.
3. How much of the $0.48 excess unit cost is traceable to apparent Inefficient use of labor time?
$5.04
Efficiency variance
Excess of actual over standard cost per unit
U
15.30
0.57 F
0.85 U
6.66
0.38 F
0.37 U
$ 27.00
How much of the $0.48 excess unit cost is traceable to each of the variances computed in requirement 1. (Indicate the effect
of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all
amounts as positive values. Round your answers to 2 decimal places.)
$ 0.48
$
Actual Cost per
Unit
$ 5.25
0.00 U
0.28 U
15.58
0.01 F
0.27 U
6.65
$ 27.48
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