Seacoast Company provided the following information about its standard costing system for 2019: Materials Labor Budgeted production Standard Data 10 lbs. @ $4 per lbs. 3 hrs. @ $21 per hr. 3,500 units Produced Materials purchased Materials used Labor worded Actual Data 4,000 units 50,000 lbs. for $215,000 41,000 lbs. 11,000 hrs. costing $220,000 Calculate the price, quantity and total variances for labor and materials. Format your answers using $, commas, and zero decimal places. Also indicate for each variance "F" for favorable or "U" for unfavorable.
Seacoast Company provided the following information about its standard costing system for 2019: Materials Labor Budgeted production Standard Data 10 lbs. @ $4 per lbs. 3 hrs. @ $21 per hr. 3,500 units Produced Materials purchased Materials used Labor worded Actual Data 4,000 units 50,000 lbs. for $215,000 41,000 lbs. 11,000 hrs. costing $220,000 Calculate the price, quantity and total variances for labor and materials. Format your answers using $, commas, and zero decimal places. Also indicate for each variance "F" for favorable or "U" for unfavorable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:Materials Price
Variance
Labor Price
Variance
Materials Variances
Favorable/Unfavorable
Total Materials Variance
Total Labor Variance
Favorable/Unfavorable
Materials Quantity
Variance
Labor Variances
Favorable/Unfavorable
Favorable/Unfavorable
Labor Quantity
Variance
Favorable/Unfavorable
Favorable/Unfavorable
Transcribed Image Text:Seacoast Company provided the following information about its standard costing system
for 2019:
Materials
Labor
Budgeted
production
Standard Data
10 lbs. @ $4 per lbs.
3 hrs. @ $21 per hr.
3,500 units
Produced
Materials
purchased
Materials used
Labor worded
Actual Data
4,000 units
50,000 lbs. for
$215,000
41,000 lbs.
11,000 hrs. costing
$220,000
Calculate the price, quantity and total variances for labor and materials.
Format your answers using $, commas, and zero decimal places. Also indicate for each
variance "F" for favorable or "U" for unfavorable.
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