What is the materials price variance for March?What is the materials quantity variance for March?What is the labor rate variance for March? Pratt Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:Direct materials: 5 pounds at $4 per pound2$.20.00Direct labor: 2 hours at $7.50 per hour15.00Variable overhead: 2 hours at $6 per hour12.00Total standard cost per unit2$47.00During March the company produced and sold 3,500 units and incurred the following costs:Purchased 17,000 pounds of raw materials at a cost of $3.50 per pound. All of this material was used in production.Direct laborers worked 7,200 hours at a rate of $8 per hour.Total variable manufacturing overhead for the month was $40,500.

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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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What is the materials price variance for March?
What is the materials quantity variance for March?
What is the labor rate variance for March?

Pratt Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-
hours and its standard cost card per unit is as follows:
Direct materials: 5 pounds at $4 per pound
2$.
20.00
Direct labor: 2 hours at $7.50 per hour
15.00
Variable overhead: 2 hours at $6 per hour
12.00
Total standard cost per unit
2$
47.00
During March the company produced and sold 3,500 units and incurred the following costs:
Purchased 17,000 pounds of raw materials at a cost of $3.50 per pound. All of this material was used in production.
Direct laborers worked 7,200 hours at a rate of $8 per hour.
Total variable manufacturing overhead for the month was $40,500.

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Trini Company set the following standard costs per unit for its single product Direct materials (30 pounds @ $4.40 per pound) Direct labor (6 hours @ $14 per hour) Variable overhead (6 hours @ $8 per hour) Fixed overhead (6 hours @ $11 per hour) $ 132.00 84.00 48.00 66.00 $ 330.00 Standard cost per unit Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 50,000 units per quarter. The following additional information is available. Production (in units) Standard direct labor hours (6 DLH per unit) Budgeted overhead (flexible budget) Fixed overhead Variable overhead Operating Levels 70% 80% 90% 35,000 210,000 40,000 240,000 45,000 270,000 $ 2,640,000 $ 1,680,000 $ 2,640,000 $ 2,640,000 $ 1,920,000 $ 2,160,000 During the current quarter, the company operated at 90% of capacity and produced 45,000 units; actual direct labor totaled 266,000 hours. Units produced were assigned the following…
Which one of the following best describes the direct material price variance? O a. The difference between the standard quantity of material used at the standard cost per unit and the actual quantity of material used at the standard direct material cost per unit O b. The difference between the budgeted material cost and direct material cost according to the unflexed budget O c. The difference between the actual direct material cost and direct material cost according to the flexed budget O d. The difference between the actual cost of the material used and the actual quantity of material used at the standard direct material cost per unit O e. The difference between the actual cost of the material used and the standard quantity of material used at the actual direct material cost per unit
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Subject: acounting
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