Material price variance The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance. Material quantity variance The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance. To compute: Favorable or unfavorable material price and quantity variance.

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Answer 1

Question

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

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Students have asked these similar questions

A firm has total sales of $2,450,000 and costs of $1,550,000. Depreciation is $85,000 and the tax rate is 30 percent.

Accounting problem

Vallejo Manufacturing's cost of goods manufactured last month was $172,000. The beginning finished goods inventory was $43,000 and the ending finished goods inventory was $37,000. Overhead was underapplied by $5,000. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Answer 2

Question

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

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Answer 3

Question

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

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Answer 4

Question

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

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Answer 5

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Answer 6

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

Answer 7

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

Answer 8

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

Answer 9

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

Answer 10

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Answer 11

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 9.A - Fixed Overhead Variances Primara Corporation has a...Ch. 9.A - Predetermined Overhead Rate: Overhead Variances...Ch. 9.A - Applying Overhead in a Standard Costing System...Ch. 9.A - Prob. 4E Ch. 9.A - Using Fixed Overhead Variances The standard cost...Ch. 9.A - Prob. 6E Ch. 9.A - Relations Among Fixed Overhead Variances Selected...Ch. 9.A - Applying Overhead; Overhead Variances Lane Company...Ch. 9.A - Applying Overhead; Overhead Variances Chilczuk....Ch. 9.A - Comprehensive Standard Cost Variances "Wonderful!...

Solution Summary: The author calculates material price and quantity variances using the standard cost variance analysis for direct labor.

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Chapter 9 Solutions