The following information relates to the current period: Standard costs (per unit of output) Direct materials, 7 gallons @ $4.00 per gallon Direct labor, 5.00 hours @ $34.00 per hour Factory overhead Variable (30% of direct labor cost) Total standard cost per unit Actual costs and activities for the month follow: $ 28 170 51 $249 15,520 gallons at $1.88 per gallon 2,160 units Materials used Output Actual labor costs 6,000 hours at $40.80 per hour Actual variable overhead $62,500 Required: Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct materials: Price variance Efficiency variance Direct materials cost variance Direct labor Price variance Efficiency variance Direct labor cost variance Variable overhead Price variance Efficiency variance
The following information relates to the current period: Standard costs (per unit of output) Direct materials, 7 gallons @ $4.00 per gallon Direct labor, 5.00 hours @ $34.00 per hour Factory overhead Variable (30% of direct labor cost) Total standard cost per unit Actual costs and activities for the month follow: $ 28 170 51 $249 15,520 gallons at $1.88 per gallon 2,160 units Materials used Output Actual labor costs 6,000 hours at $40.80 per hour Actual variable overhead $62,500 Required: Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct materials: Price variance Efficiency variance Direct materials cost variance Direct labor Price variance Efficiency variance Direct labor cost variance Variable overhead Price variance Efficiency variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information relates to the current period:
Standard costs (per unit of output)
Direct materials, 7 gallons @ $4.00 per gallon.
Direct labor, 5.00 hours @ $34.00 per hour
Factory overhead
Variable (38% of direct labor cost)
Total standard cost per unit
Actual costs and activities for the month follow:
Materials used
Output
Actual labor costs
Actual variable overhead
Required:
$ 28
170
51
$249
15,520 gallons at $1.88 per gallon
. 2,160 units
6,000 hours at $40.80 per hour
$62,500
Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. Do not round intermediate
calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not
select either option.)
Direct materials:
Price variance
Efficiency variance
Direct materials cost variance
Direct labor
Price variance
Efficiency variance
Direct labor cost variance
Variable overhead
Price variance
Efficiency variance
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