Standard Costs materials t labor 192,400 lbs. at $5.10 per lb. 18,500 hrs. at $16.90 per hr. Actual Costs 190,500 lbs. at $5.00 per lb. 18,930 hrs. at $17.30 per hr. ry overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: $67,770 variable cost $111,998 fixed cost Variable cost, $3.70 Fixed cost, $5.80 unit requires 0.25 hour of direct labor. uired: etermine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. ct Materials Price Variance ect Materials Quantity Variance Direct Materials Cost Variance Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. ect Labor Rate Variance ect Labor Time Variance al Direct Labor Cost Variance Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as
Standard Costs materials t labor 192,400 lbs. at $5.10 per lb. 18,500 hrs. at $16.90 per hr. Actual Costs 190,500 lbs. at $5.00 per lb. 18,930 hrs. at $17.30 per hr. ry overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: $67,770 variable cost $111,998 fixed cost Variable cost, $3.70 Fixed cost, $5.80 unit requires 0.25 hour of direct labor. uired: etermine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. ct Materials Price Variance ect Materials Quantity Variance Direct Materials Cost Variance Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. ect Labor Rate Variance ect Labor Time Variance al Direct Labor Cost Variance Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows:
Actual Costs
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Standard Costs
Direct materials
192,400 lbs. at $5.10 per lb.
190,500 lbs. at $5.00 per lb.
Direct labor
18,500 hrs. at $16.90 per hr.
18,930 hrs. at $17.30 per hr.
Factory overhead
Rates per direct labor hr., based on 100% of normal
capacity of 19,310 direct labor hrs.:
Variable cost, $3.70
Fixed cost, $5.80
$67,770 variable cost
$111,998 fixed cost
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Materials Price Variance
Direct Materials Quantity Variance
Total Direct Materials Cost Variance
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Labor Rate Variance
Direct Labor Time Variance
Total Direct Labor Cost Variance
c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Variable factory overhead controllable variance
Fixed factory overhead volume variance
Total factory overhead cost variance
1
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education