Problem 16-74 (Static) Variance Computations with Missing Data (LO 16-5, 6) Anthon Corporation has provided the following information regarding last month's activities. Units produced (actual) Master production budget Direct materials Direct labor Overhead Standard costs per unit Direct materials Direct labor Variable overhead Actual costs Direct materials purchased and used Direct labor Overhead Direct materials Direct labor Variable overhead Fixed overhead $ $ $ $ Variable overhead is applied on the basis of direct labor-hours. Required: Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Price Variance 3,192 F 0X U U 26,316 11,500 U 10,500 $ 237,600 201,600 267,000 $ $ $ $ 3.96 per liter x 5 liters per unit of output $33.60 per hour x 0.5 hour per unit $ 28.50 per direct labor-hour Answer is complete but not entirely correct. EA $ 207,480 (53,200 liters) 176,472 (5,160 hours) 272,000 (58% is variable) Efficiency Variance 2,772 U 3,024 F 3,024 X F Production Volume Variance 25,000 U
Problem 16-74 (Static) Variance Computations with Missing Data (LO 16-5, 6) Anthon Corporation has provided the following information regarding last month's activities. Units produced (actual) Master production budget Direct materials Direct labor Overhead Standard costs per unit Direct materials Direct labor Variable overhead Actual costs Direct materials purchased and used Direct labor Overhead Direct materials Direct labor Variable overhead Fixed overhead $ $ $ $ Variable overhead is applied on the basis of direct labor-hours. Required: Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variances. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Price Variance 3,192 F 0X U U 26,316 11,500 U 10,500 $ 237,600 201,600 267,000 $ $ $ $ 3.96 per liter x 5 liters per unit of output $33.60 per hour x 0.5 hour per unit $ 28.50 per direct labor-hour Answer is complete but not entirely correct. EA $ 207,480 (53,200 liters) 176,472 (5,160 hours) 272,000 (58% is variable) Efficiency Variance 2,772 U 3,024 F 3,024 X F Production Volume Variance 25,000 U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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:Problem 16-74 (Static) Variance Computations with Missing Data (LO 16-5, 6)
Anthon Corporation has provided the following information regarding last month's activities.
Units produced (actual)
Master production budget
Direct materials
Direct labor
Overhead
Standard costs per unit
Direct materials
Direct labor
Variable overhead
Actual costs
Direct materials purchased and used
Direct labor
Overhead
Direct materials
Direct labor
Variable overhead
Fixed overhead
$
Variable overhead is applied on the basis of direct labor-hours.
Required:
Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variances.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for
unfavorable. If there is no effect, do not select either option.
$
$
$
10,500
$ 237,600
201,600
267,000
Price Variance
3,192 F
0x U
26,316 X U
11,500 X U
$3.96 per liter x 5 liters per unit of output
$ 33.60 per hour x 0.5 hour per unit
$28.50 per direct labor-hour
✓$
✓$
✓$
✓
$207,480 (53,200 liters)
176,472 (5,160 hours)
272,000 (58% is variable)
> Answer is complete but not entirely correct.
Efficiency Variance
2,772 U
3,024 F
3,024 F
✓
✓
✓
$
Production Volume
Variance
25,000
U
✔
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