The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are: Standard Costs: Direct materials - 2,500 kilograms @ $8.50 Actual Costs: The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at $22.00 Actual costs 35,000 hours at $23.00 What is the direct labor time variance? a. $36,000 unfavorable b. $35,000 unfavorable Direct materials - 2,603 kilograms @ $8.75 c. $23,000 favorable The amount of the direct materials quantity variance is: d. $22,000 favorable a. $875 favorable variance b. $850 unfavorable variance c. $850 favorable variance d. $875 unfavorable variance Assume that the best cost driver that Sony has for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 580,000 machine hours and $6,000,000 for its Texas plant's assembly department. The actual variable overhead incurred was $6,200,000, which was related to 600,000 machine hours. a) determine the variable overhead spending variance b) determine the variable overhead efficiency variance
The standard costs and actual costs for direct materials for the manufacture of 2,500 actual units of product are: Standard Costs: Direct materials - 2,500 kilograms @ $8.50 Actual Costs: The following data relate to direct labor costs for the current period: Standard costs 36,000 hours at $22.00 Actual costs 35,000 hours at $23.00 What is the direct labor time variance? a. $36,000 unfavorable b. $35,000 unfavorable Direct materials - 2,603 kilograms @ $8.75 c. $23,000 favorable The amount of the direct materials quantity variance is: d. $22,000 favorable a. $875 favorable variance b. $850 unfavorable variance c. $850 favorable variance d. $875 unfavorable variance Assume that the best cost driver that Sony has for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 580,000 machine hours and $6,000,000 for its Texas plant's assembly department. The actual variable overhead incurred was $6,200,000, which was related to 600,000 machine hours. a) determine the variable overhead spending variance b) determine the variable overhead efficiency variance
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The standard costs and actual costs for direct
materials for the manufacture of 2,500 actual
units of product are:
Standard Costs:
Direct materials - 2,500 kilograms @ $8.50
Actual Costs:
The following data relate to direct labor costs for the current
period:
Standard costs 36,000 hours at $22.00
Actual costs 35,000 hours at $23.00
What is the direct labor time variance?
a. $36,000 unfavorable
b. $35,000 unfavorable
Direct materials - 2,603 kilograms @ $8.75
c. $23,000 favorable
The amount of the direct materials quantity
variance is:
d. $22,000 favorable
a. $875 favorable variance
b. $850 unfavorable variance
c. $850 favorable variance
d. $875 unfavorable variance
Assume that the best cost driver that Sony has
for variable factory overhead in the assembly
department is machine hours. During April, the
company budgeted 580,000 machine hours and
$6,000,000 for its Texas plant's assembly
department. The actual variable overhead
incurred was $6,200,000, which was related to
600,000 machine hours.
a) determine the variable overhead spending
variance
b) determine the variable overhead efficiency
variance
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