The standard cost card for a single unit of Robinson, Incorporated's products is shown below.Direct materials:Direct labor:Variable overhead (based on labor hours):Budgeted production for the monthActual production for the monthActual Costs Incurred to Produce 13,500 units:Direct Materials Purchased and UsedDirect Labor PaidVariable Overhead IncurredStandard Quantity Standard Price/Rate2.5 yards @$ 8.00 per yard0.5 hours @$18.00 per hour0.5 hours @$10.00 per hour14,000 units13,500 unitsTHAT1. Compute the direct material, direct labor and variable overhead variances.Navigation:Open Excel in new tabStandard Quantity35, 100 yards @7,425 hours @7,425 hours @StandardUnit Cost$20.009.005.00Standard Price/Rate$7.00 per yard$17.50 per hour$12.00 per hour1. Use the Open Excel in New Tab button to launch this question.2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.Total ActualCost$2,45,700$1,29,938$ 89,100

Name: The standard cost card for a single unit of Robinson, Incorporated's
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Description: The standard cost card for a single unit of Robinson, Incorporated's products is shown below.Direct materials:Direct labor:Variable overhead (based on labor hours):Budgeted production for the monthActual production for the monthActual Costs Incurred

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Accounting

The standard cost card for a single unit of Robinson, Incorporated's products is shown below. Direct materials: Direct labor: Variable overhead (based on labor hours): Budgeted production for the month Actual production for the month Actual Costs Incurred to Produce 13,500 units: Direct Materials Purchased and Used Direct Labor Paid Variable Overhead Incurred X Standard Quantity Standard Price/Rate 2.5 yards @ $8.00 per yard 0.5 hours @ $18.00 per hour 0.5 hours @ $ 10.00 per hour. 14,000 units 13,500 units 1. Compute the direct material, direct labor and variable overhead variances. Navigation: i Open Excel in new tab Standard Quantity 35,100 yards @ 7,425 hours @ 7,425 hours @ Standard Unit Cost $ 20.00 9.00 5.00 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. Standard Price/Rate $7.00 per yard $17.50 per hour $12.00 per hour. Total Actual Cost $2,45,700 $1,29,938 $ 89,100

The standard cost card for a single unit of Robinson, Incorporated's products is shown below. Direct materials: Direct labor: Variable overhead (based on labor hours): Budgeted production for the month Actual production for the month Actual Costs Incurred to Produce 13,500 units: Direct Materials Purchased and Used Direct Labor Paid Variable Overhead Incurred X Standard Quantity Standard Price/Rate 2.5 yards @ $8.00 per yard 0.5 hours @ $18.00 per hour 0.5 hours @ $ 10.00 per hour. 14,000 units 13,500 units 1. Compute the direct material, direct labor and variable overhead variances. Navigation: i Open Excel in new tab Standard Quantity 35,100 yards @ 7,425 hours @ 7,425 hours @ Standard Unit Cost $ 20.00 9.00 5.00 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. Standard Price/Rate $7.00 per yard $17.50 per hour $12.00 per hour. Total Actual Cost $2,45,700 $1,29,938 $ 89,100

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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.

Topic Video

Question

The standard cost card for a single unit of Robinson, Incorporated's products is shown below.
Direct materials:
Direct labor:
Variable overhead (based on labor hours):
Budgeted production for the month
Actual production for the month
Actual Costs Incurred to Produce 13,500 units:
Direct Materials Purchased and Used
Direct Labor Paid
Variable Overhead Incurred
Standard Quantity Standard Price/Rate
2.5 yards @
$ 8.00 per yard
0.5 hours @
$18.00 per hour
0.5 hours @
$10.00 per hour
14,000 units
13,500 units
THAT
1. Compute the direct material, direct labor and variable overhead variances.
Navigation:
Open Excel in new tab
Standard Quantity
35, 100 yards @
7,425 hours @
7,425 hours @
Standard
Unit Cost
$20.00
9.00
5.00
Standard Price/Rate
$7.00 per yard
$17.50 per hour
$12.00 per hour
1. Use the Open Excel in New Tab button to launch this question.
2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.
Total Actual
Cost
$2,45,700
$1,29,938
$ 89,100

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Step 1: Definition of direct material variance:

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Step 2: Computation of direct material variances:

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Step 3: Computation of direct labor variances:

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Step 4: Computations of variable overhead variances:

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