Question

X Data Table 1 Standard Cost Information Quantity Cost 0.15 per part Direct Materials 2 parts 0.02 hours Direct Labor 9.00 per hour Variable Manufacturing Overhead 0.02 hours 9.00 per hour Fixed Manufacturing Overhead ($31,360 for static budget volume of 98,000 units and 1,960 hours, or $16 per hour) Actual Cost Information $ 0.20 per part) $ 42,200 (211,000 parts@ Direct Materials $ 9.15 per hour) Direct Labor (1,660 hours@ 15,189 Variable Manufacturing Overhead 10,000 Fixed Manufacturing Overhead 30,000 Print Done

Answer 1

1.
Direct material Cost variance = (Actual Cost - Standard Cost) x Actual Quantity
= ($0.20 - $0.15) x 211000 = $10550 (U)

Direct labor Cost Variance = (Actual Cost - Standard Cost) x Actual hours
= ($9.15 - $9) x 1660 = $249 (U)

2.
Direct Material efficiency Variance = (Actual Quantity - Standard Quantity) x Standard Cost
= (211000 - 216000) x $0.15 = $750 (F)
Standard Quantity = 108000 x 2 = 216000

Direct Labor Efficiency Variance = (Actual hours - Standard hours) x Standard Cost
= (1660 - 2160) x $9 = $4500 (F)
Standard Hours = 108000 x 0.02 = 2160

3.
Variable Overhead Cost Variance = Actual Overhead - Standard Cost x Actual hours
= $10000 - $9 x 1660 = $4940 (F)

Variable Overhead Efficiency Variance = (Actual hours - Standard hours) x Standard Cost
= (1660 - 2160) x $9 = $4500 (F)
Standard Hours = 108000 x 0.02 = 2160

4.
FOH Cost Variance = Actual overhead - Budgeted Overhead
= $30000 - $31360 = $1360 (F)

FOH Volume Variance =(Actual units - Budgeted units) x Predetermined overhead rate
= (108000 - 98000) x $0.32 = $3200 (F)
Predetermined overhead rate = $31360 / 98000 = $0.32 per unit