LCC Company produce cereal product. At the beginning of the year, LCC Company had the following standard cost shee per unit if almond chocolates (estimated to yield 4 kg per unit). SPUsageStandard CostDirect Material: Dried Fruits$ 30.003 kg$ 90.00Corn $ 20.002 kg$ 40.00TOTAL 5 kg$ 130.00Direct Labor: Assembly$ 25.000.80 hr$ 20.00Packaging$ 20.000.20 hr$ 4.00TOTAL 1 hr$ 24.00 Actual Results: Output875 units Yield3,500 kg Actual MixActual PriceDirect Material: Dried Fruits1,400 kg $ 28.00Corn 2,600 kg$ 24.00TOTAL4,000 kg Direct Labor: Assembly675 hours$ 24.50Packaging225 hours$ 21.00TOTAL900 hours If the variance is Unfavorable, the amount should be positive. Otherwise the Favorable variance should be negatove amount. Round the final answers to two decimal places. Compute for the following:1. Material Price Variance?2. Material Mix Variance?3. Material Yield Variance?4.Material Quantity Variance?5. Labor Rate Variance?6. Labor Mix Variance?7.Labor Yield Variance?8. Labor Efficiency Variance?

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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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LCC Company produce cereal product. At the beginning of the year, LCC Company had the following standard cost shee per unit if almond chocolates (estimated to yield 4 kg per unit).

	SP	Usage	Standard Cost
Direct Material:
Dried Fruits	$ 30.00	3 kg	$ 90.00
Corn	$ 20.00	2 kg	$ 40.00
TOTAL		5 kg	$ 130.00
Direct Labor:
Assembly	$ 25.00	0.80 hr	$ 20.00
Packaging	$ 20.00	0.20 hr	$ 4.00
TOTAL		1 hr	$ 24.00

Actual Results:
Output	875 units
Yield	3,500 kg
	Actual Mix	Actual Price
Direct Material:
Dried Fruits	1,400 kg	$ 28.00
Corn	2,600 kg	$ 24.00
TOTAL	4,000 kg
Direct Labor:
Assembly	675 hours	$ 24.50
Packaging	225 hours	$ 21.00
TOTAL	900 hours

If the variance is Unfavorable, the amount should be positive. Otherwise the Favorable variance should be negatove amount. Round the final answers to two decimal places. Compute for the following:

1. Material Price Variance?

2. Material Mix Variance?

3. Material Yield Variance?

4.Material Quantity Variance?

5. Labor Rate Variance?

6. Labor Mix Variance?

7.Labor Yield Variance?

8. Labor Efficiency Variance?

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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