The following data were drawn from the records of Quentin Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit 6,000 units 3.1 pounds e $3.00 per pound 2 hours @ $8.00 per hour $56,400 6,300 units 2.7 pounds @ $4.00 per pound 2.3 hours @ $7.20 per hour $45,000 Total actual fixed overhead costs Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d Calcuulate the laber price ariancor In ato whothor favorable (E)er unfaverable (LU
The following data were drawn from the records of Quentin Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit 6,000 units 3.1 pounds e $3.00 per pound 2 hours @ $8.00 per hour $56,400 6,300 units 2.7 pounds @ $4.00 per pound 2.3 hours @ $7.20 per hour $45,000 Total actual fixed overhead costs Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d Calcuulate the laber price ariancor In ato whothor favorable (E)er unfaverable (LU
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:The following data were drawn from the records of Quentin Corporation.
Planned volume for year (static budget)
Standard direct materials cost per unit
Standard direct labor cost per unit
Total expected fixed overhead costs
Actual volume for the year (flexible budget)
Actual direct materials cost per unit
Actual direct labor cost per unit
6,000 units
3.1 pounds @ $3.00 per pound
2 hours
@ $8.00 per hour
$56,400
6,300 units
2.7 pounds @ $4.00 per pound
2.3 hours
@ $7.20 per hour
Total actual fixed overhead costs
$45,000
Required
a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual
quantity.
b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).
c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.
d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).
e. Calculate the predetermined overhead rate, assuming that Quentin uses the number of units as the allocation base.
f. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U).
g. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).
Complete this question by entering your answers in the tabs below.
Req A
Req B
Req C
Req D
Req E to G
Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the
actual quantity. (Round "Standard price" and "Actual price" to 2 decimal places.)
Materials Variance Information Table
Standard price
per pound
Actual price
per pound
Standard quantity for flexible budget
pounds
Actual quantity used
pounds
< Reg A
Req B >
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