Part of your company's accounting database was destroyed during a ransomware attack. You have been able togather the following data from your files. Reconstruct the remaining information using the available data. All of theraw material purchased during the period was used in production.Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter"O" for no effect (i.e., zero variance). Round "Standard Quantity per Unit of Output" to 2 decimal places.Direct LaborDirect MaterialbokStandard price or rate per unit of inputper hour$7.00 per poundStandard quantity per unit of outputhours per unitpounds per unitActual quantity used per unit of output1.80 hourspounds per unitintActual price or rate per unit of input$11.00 per hour$6.00 per poundrencesActual outputDirect-material price varianceDirect-material quantity variance5,000 units5,000 units$34,000 F$14,000 UTotal direct-material variance$20,000 FDirect-labor rate variance$9,000 UDirect-labor efficiency variance$10,000 FTotal direct-labor variance$1,000 F

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Description: Part of your company's accounting database was destroyed during a ransomware attack. You have been able togather the following data from your files. Reconstruct the remaining information using the available data. All of theraw material purchased dur

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Part of your company's accounting database was destroyed during a ransomware attack. You have been able to gather the following data from your files. Reconstruct the remaining information using the available data. All of the raw material purchased during the period was used in production. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). Round "Standard Quantity per Unit of Output" to 2 decimal places. Direct Labor Direct Material Standard price or rate per unit of input per hour $ 7.00 per pound Standard quantity per unit of output hours per unit pounds per unit Actual quantity used per unit of output 1.80 hours pounds per unit Actual price or rate per unit of input $ 11.00 per hour $ 6.00 per pound Actual output Direct-material price variance Direct-material quantity variance 5,000 units 5,000 units $ 34.000 F $ 14,000 U 20.000 E

Part of your company's accounting database was destroyed during a ransomware attack. You have been able to gather the following data from your files. Reconstruct the remaining information using the available data. All of the raw material purchased during the period was used in production. Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). Round "Standard Quantity per Unit of Output" to 2 decimal places. Direct Labor Direct Material Standard price or rate per unit of input per hour $ 7.00 per pound Standard quantity per unit of output hours per unit pounds per unit Actual quantity used per unit of output 1.80 hours pounds per unit Actual price or rate per unit of input $ 11.00 per hour $ 6.00 per pound Actual output Direct-material price variance Direct-material quantity variance 5,000 units 5,000 units $ 34.000 F $ 14,000 U 20.000 E

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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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.

Topic Video

Question

Part of your company's accounting database was destroyed during a ransomware attack. You have been able to
gather the following data from your files. Reconstruct the remaining information using the available data. All of the
raw material purchased during the period was used in production.
Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter
"O" for no effect (i.e., zero variance). Round "Standard Quantity per Unit of Output" to 2 decimal places.
Direct Labor
Direct Material
bok
Standard price or rate per unit of input
per hour
$
7.00 per pound
Standard quantity per unit of output
hours per unit
pounds per unit
Actual quantity used per unit of output
1.80 hours
pounds per unit
int
Actual price or rate per unit of input
$
11.00 per hour
$
6.00 per pound
rences
Actual output
Direct-material price variance
Direct-material quantity variance
5,000 units
5,000 units
$
34,000 F
$
14,000 U
Total direct-material variance
$
20,000 F
Direct-labor rate variance
$
9,000 U
Direct-labor efficiency variance
$
10,000 F
Total direct-labor variance
$
1,000 F

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