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 Standard quantity per unit of output Actual quantity used per unit of output $ 20.00 per hour $ 12.00 per pound 2.68 hours per unit pounds per unit 2.50 hours 4.83 pounds per unit Actual output Actual price or rate per unit of input Direct-material price variance $ 21.00 per hour $ 11.00 per pound 10,000 units 10,000 units $ 52,500 F Direct-material quantity variance $ (18,000) U Total direct-material variance $ 34,500 F Direct-labor rate variance $ (25,000) U Direct-labor efficiency variance $ 35,000 F Total direct-labor variance $ 10,000 F

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 Standard quantity per unit of output Actual quantity used per unit of output $ 20.00 per hour $ 12.00 per pound 2.68 hours per unit pounds per unit 2.50 hours 4.83 pounds per unit Actual output Actual price or rate per unit of input Direct-material price variance $ 21.00 per hour $ 11.00 per pound 10,000 units 10,000 units $ 52,500 F Direct-material quantity variance $ (18,000) U Total direct-material variance $ 34,500 F Direct-labor rate variance $ (25,000) U Direct-labor efficiency variance $ 35,000 F Total direct-labor variance $ 10,000 F

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Description: Part of your company's accounting database was destroyed during a ransomware attack. You have been able to gather the followingdata from your files. Reconstruct the remaining information using the available data. All of the raw material purchased du

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 "0" 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
Standard quantity per unit of output
Actual quantity used per unit of output
$
20.00 per hour
$
12.00 per pound
2.68 hours per unit
pounds per unit
2.50 hours
4.83 pounds per unit
Actual price or rate per unit of input
$
21.00 per hour
$
11.00 per pound
Actual output
10,000 units
10,000 units
Direct-material price variance
$
52,500 F
Direct-material quantity variance
$
(18,000) U
Total direct-material variance
$
34,500 F
ces
Direct-labor rate variance
$
(25,000) U
Direct-labor efficiency variance
$
35,000 F
Total direct-labor variance
$
10,000 F

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