Sheffield Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the tests have been developed by the company's controller, Landon Sheffield, based on performing 2,100 core tests per month. Standard Standard Standard Price Quantity Cost $0.50 per pound $10 per DLH $9 per DLH $16 per DLH Direct materials 5 pounds $2.50 Direct labor 0.50 DLH 5.00 Variable overhead 0.50 DLH 4.50 Fixed overhead 0.50 DLH 8.00 Total standard cost per test $20.00 At the end of March, London reported the following operational results: The company actually performed 2,280 core tests during the month. 8,500 pounds of direct materials were purchased during the month at a total cost of $5,700. 6,200 pounds of direct materials were used to conduct the core tests. 840 direct labor hours were worked at a total cost of $9,830. Actual variable overhead was $7,700. Actual fixed overhead was $15,800. (a) Calculate the direct materials price variance for March. (Round per unit value to 2 decimal places, eg. 52.75 and final answer to 0 decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter O for the amounts.) 1445 Unfavorable Direct materials price variance (b) Calculate the direct materials quantity variance for March. (Round answer to 0 decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter O for the amounts.) -2600 Favorable Direct materials quantity variance %24 %24
Sheffield Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the tests have been developed by the company's controller, Landon Sheffield, based on performing 2,100 core tests per month. Standard Standard Standard Price Quantity Cost $0.50 per pound $10 per DLH $9 per DLH $16 per DLH Direct materials 5 pounds $2.50 Direct labor 0.50 DLH 5.00 Variable overhead 0.50 DLH 4.50 Fixed overhead 0.50 DLH 8.00 Total standard cost per test $20.00 At the end of March, London reported the following operational results: The company actually performed 2,280 core tests during the month. 8,500 pounds of direct materials were purchased during the month at a total cost of $5,700. 6,200 pounds of direct materials were used to conduct the core tests. 840 direct labor hours were worked at a total cost of $9,830. Actual variable overhead was $7,700. Actual fixed overhead was $15,800. (a) Calculate the direct materials price variance for March. (Round per unit value to 2 decimal places, eg. 52.75 and final answer to 0 decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter O for the amounts.) 1445 Unfavorable Direct materials price variance (b) Calculate the direct materials quantity variance for March. (Round answer to 0 decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter O for the amounts.) -2600 Favorable Direct materials quantity variance %24 %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Chapter 6 Question 8
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Transcribed Image Text:Sheffield Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the
tests have been developed by the company's controller, Landon Sheffield, based on performing 2,100 core tests per month.
Standard
Standard
Standard Price
Quantity
Cost
$0.50 per pound
$10 per DLH
Direct materials
5 pounds
$2.50
Direct labor
0.50 DLH
5.00
$9 per DLH
$16 per DLH
Variable overhead
0.50 DLH
4.50
Fixed overhead
0.50 DLH
8.00
Total standard cost per test
$20.00
At the end of March, London reported the following operational results:
The company actually performed 2,280 core tests during the month.
8,500 pounds of direct materials were purchased during the month at a total cost of $5,700.
6,200 pounds of direct materials were used to conduct the core tests.
840 direct labor hours were worked at a total cost of $9,830.
Actual variable overhead was $7,700.
Actual fixed overhead was $15,800.
(a) Calculate the direct materials price variance for March. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to 0
decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter O for the amounts.)
$
Direct materials price variance
1445
Unfavorable
(b) Calculate the direct materials quantity variance for March. (Round answer to 0 decimal places, e.g. 5,275. If variance is zero, select
"Not Applicable" and enter O for the amounts.)
-2600
Favorable
Direct materials quantity variance
%24
Transcribed Image Text:(e) Calculate the variable overhead spending variance for March. (Round per unit value to 2 decimal places, eg. 52.75 and final answer to
O decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter O for the amounts.)
$
Variable overhead spending variance
(f) Calculate the variable overhead efficiency variance for March. (Round answer to O decimal places, e,g. 5,275. If variance is zero, select
"Not Applicable" and enter O for the amounts.)
$
Variable overhead efficiency variance
(g) Calculate the fixed overhead spending variance for March. (Round per unit value to 2 decimal places, eg. 52.75 and final answer to 0
decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter O for the amounts.)
Fixed overhead spending variance
%24
%24
%24
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