THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1-10. Quiz Company determined the following standards on January 1. Direct materials Direct labor Variable overhead Fixed overhead Units produced Direct materials purchased Direct materials used Direct labor Variable overhead Fixed overhead 5 lbs. per unit 0.75 DL hrs. per unit 0.75 DL hrs per unit 0.75 DL hrs. per unit The fixed overhead rate was based on budgeted production of 54,000 units. The actual results for the year were as follows $2.00 per lb. $18.00 per DL hr. $3.00 per DL hr. $4.00 per DL hr. Example $12,345 Favorable 53,000 units 274,000 lbs. at $2.50 per lb. 270,300 lbs 40,100 DL hrs. at $17.95 per DL hr. $122,000 $161,700 Note For each variance, the first blank will be the dollar amount of the variance. Give your answer using dollar signs and commas but no deci label the variance as either favorable or unfavorable. Determine the direct materials price variance, and Label the variance as either favorable or unfavorable
THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1-10. Quiz Company determined the following standards on January 1. Direct materials Direct labor Variable overhead Fixed overhead Units produced Direct materials purchased Direct materials used Direct labor Variable overhead Fixed overhead 5 lbs. per unit 0.75 DL hrs. per unit 0.75 DL hrs per unit 0.75 DL hrs. per unit The fixed overhead rate was based on budgeted production of 54,000 units. The actual results for the year were as follows $2.00 per lb. $18.00 per DL hr. $3.00 per DL hr. $4.00 per DL hr. Example $12,345 Favorable 53,000 units 274,000 lbs. at $2.50 per lb. 270,300 lbs 40,100 DL hrs. at $17.95 per DL hr. $122,000 $161,700 Note For each variance, the first blank will be the dollar amount of the variance. Give your answer using dollar signs and commas but no deci label the variance as either favorable or unfavorable. Determine the direct materials price variance, and Label the variance as either favorable or unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 1-10.
Quiz Company determined the following standards on January 1.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Units produced
Direct materials purchased
Direct materials used
Direct labor
The fixed overhead rate was based on budgeted production of 54,000 units.
The actual results for the year were as follows
Variable overhead
Fixed overhead
5 lbs. per unit
0.75 DL hrs. per unit
0.75 DL hrs per unit
0.75 DL hrs. per unit
$2.00 per lb.
$18.00 per DL hr.
$3.00 per DL hr.
$4.00 per DL hr.
Example
$12,345
Favorable
53,000 units
274,000 lbs. at $2.50 per lb.
270,300 lbs.
40,100 DL hrs. at $17.95 per DL hr.
$122,000
$161,700
Note For each variance, the first blank will be the dollar amount of the variance. Give your answer using dollar signs and commas but no deci
label the variance as either favorable or unfavorable.
Determine the direct materials price variance, and
Label the variance as either favorable or unfavorable
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