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etermine the following: Total material price variance Total material usage (quantity) variance Labor rate variance Labor efficiency variance Variable overhead spending variance Variable overhead efficiency variance

etermine the following: Total material price variance Total material usage (quantity) variance Labor rate variance Labor efficiency variance Variable overhead spending variance Variable overhead efficiency variance

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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Answer only g, h, and i

Determine the following: a. Total material price variance b. Total material usage (quantity) variance c. Labor rate variance d. Labor efficiency variance e. Variable overhead spending variance f. Variable overhead efficiency variance g. Fixed overhead spending variance h. Volume variance i. Budget variance
Transcribed Image Text:Determine the following: a. Total material price variance b. Total material usage (quantity) variance c. Labor rate variance d. Labor efficiency variance e. Variable overhead spending variance f. Variable overhead efficiency variance g. Fixed overhead spending variance h. Volume variance i. Budget variance
LO.3 (Comprehensive) Piedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum 4 sheets at $4 $ 16 Copper 3 sheets at $8 24 Direct labor 7 hours at $16 112 5 machine hours at $6 5 machine hours at $4 Variable overhead 30 Fixed overhead 20 Overhead rates were based on normal monthly capacity of 6,000 machine hours. During November, the company produced only 850 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aluminum 4,000 sheets purchased at $3.80; used 3,500 sheets Copper 3,000 sheets purchased at $8.40; used 2,600 sheets Direct Labor Regular time 5,200 hours at $16 (pre-contract settlement) Regular time 900 hours at $17 (post-contract settlement) Variable Overhead $23,300 (based on 4,175 machine hours) Fixed Overhead $18,850 (based on 4,175 machine hours)
Transcribed Image Text:LO.3 (Comprehensive) Piedmont Manufacturing produces metal products with the following standard quantity and cost information: Direct Material Aluminum 4 sheets at $4 $ 16 Copper 3 sheets at $8 24 Direct labor 7 hours at $16 112 5 machine hours at $6 5 machine hours at $4 Variable overhead 30 Fixed overhead 20 Overhead rates were based on normal monthly capacity of 6,000 machine hours. During November, the company produced only 850 units because of a labor strike, which occurred during union contract negotiations. After the dispute was settled, the company scheduled overtime to try to meet regular production levels. The following costs were incurred in November: Material Aluminum 4,000 sheets purchased at $3.80; used 3,500 sheets Copper 3,000 sheets purchased at $8.40; used 2,600 sheets Direct Labor Regular time 5,200 hours at $16 (pre-contract settlement) Regular time 900 hours at $17 (post-contract settlement) Variable Overhead $23,300 (based on 4,175 machine hours) Fixed Overhead $18,850 (based on 4,175 machine hours)
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