FILEPasteClipboardE40HOMECalibriBIU3 Direct materials:4 Standard5 Actual6 Direct labor:7 Standard8 ActualINSERT⠀1213 Total cost per unit14Font9 Variable overhead:10 Standard11 ActualX11 Α Α΄2.4 yards @3 yards @0.6 hours @0.5 hours @Basic Variance Analysis and the Impact of Variances on Unit Costs - ExcelPAGE LAYOUTFORMULASDATAREVIEWVIEW0.6 hours @0.5 hours @4-ABCDEFG1 Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month:2fxxF%Alignment Number$2.75 per yard$2.70 per yard$18.00 per hour$22.00 per hour$7.00 per hour$7.10 per hourConditional Format as CellFormatting Table StylesStyles15 Excess of actual cost over standard cost per unit1617 Actual production for the month13,500 units18 Variable overhead is assigned to products based on direct labor hours. There19 was no beginning or ending inventory of materials for the month.20$6.6010.804.20Cells Editin,$21.60$8.1011.003.55$22.65$1.05

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Standard costing signifies wherein the total cost is budgeted and then the actual cost is compared…

Business

Accounting

Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month: Direct materials: Standard Actual Direct labor: Standard 2.4 yards @ 3 yards @ Total cost per unit 0.6 hours @ 0.5 hours @ Actual Variable overhead: Standard Actual 0.6 hours @ 0.5 hours @ $2.75 per yard $2.70 per yard $18.00 per hour $22.00 per hour $7.00 per hour $7.10 per hour Excess of actual cost over standard cost per unit Actual production for the month 13,500 units Variable overhead is assigned to products based on direct labor hours. There was no beginning or ending inventory of materials for the month. $6.60 10.80 4.20 $21.60 $8.10 11.00 3.55 $22.65 $1.05

Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month: Direct materials: Standard Actual Direct labor: Standard 2.4 yards @ 3 yards @ Total cost per unit 0.6 hours @ 0.5 hours @ Actual Variable overhead: Standard Actual 0.6 hours @ 0.5 hours @ $2.75 per yard $2.70 per yard $18.00 per hour $22.00 per hour $7.00 per hour $7.10 per hour Excess of actual cost over standard cost per unit Actual production for the month 13,500 units Variable overhead is assigned to products based on direct labor hours. There was no beginning or ending inventory of materials for the month. $6.60 10.80 4.20 $21.60 $8.10 11.00 3.55 $22.65 $1.05

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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

FILE
Paste
Clipboard
E40
HOME
Calibri
BIU
3 Direct materials:
4 Standard
5 Actual
6 Direct labor:
7 Standard
8 Actual
INSERT
⠀
12
13 Total cost per unit
14
Font
9 Variable overhead:
10 Standard
11 Actual
X
11 Α Α΄
2.4 yards @
3 yards @
0.6 hours @
0.5 hours @
Basic Variance Analysis and the Impact of Variances on Unit Costs - Excel
PAGE LAYOUT
FORMULAS
DATA
REVIEW
VIEW
0.6 hours @
0.5 hours @
4-
A
B
C
D
E
F
G
1 Standards for one of Patterson, Inc.'s products is shown below, along with actual cost data for the month:
2
fxx
F
%
Alignment Number
$2.75 per yard
$2.70 per yard
$18.00 per hour
$22.00 per hour
$7.00 per hour
$7.10 per hour
Conditional Format as Cell
Formatting Table Styles
Styles
15 Excess of actual cost over standard cost per unit
16
17 Actual production for the month
13,500 units
18 Variable overhead is assigned to products based on direct labor hours. There
19 was no beginning or ending inventory of materials for the month.
20
$6.60
10.80
4.20
Cells Editin,
$21.60
$8.10
11.00
3.55
$22.65
$1.05

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Rocks Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Activity Overhead per Activity Annual Usage Machine Set Up $75,000 6,000 Machine Hours $85,002 5,484 Inspections $70,000 20,000 Compute the overhead rate for each activity.
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Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Rex Industries data Activity Machine setups Machine hours Inspections Overhead per Activity $155,000 352,800 120,750 Annual Usage 4,000 14,112 3,500 Overhead Rate per Activity $ Complete the chart and compute the overhead rate for each activity. Round to the nearest penny, two decimal places.
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6
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Bulluck Corporation makes a product with the following standard costs: Direct materials Direct labor Variable overhead Standard Quantity or Hours 3.5 grams 0.7 hours 0.7 hours The company reported the following results concerning this product in July. Actual output Raw materials used in production Actual direct labor-hours Purchases of raw materials Actual price of raw materials purchased Actual direct labor rate Actual variable overhead rate Standard Price or Rate $ 1.00 per gram $ 11.00 per hour $ 2.00 per hour The variable overhead rate variance for July is: 3,000 units 11,370 grams 1,910 hours 12,100 grams $ 1.20 per gram $11.40 per hour $ 2.10 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.