Question

Solve this problem with explanation.

Chapter 10 - Standard costs Variance Problem 1 The following materials standards have been established for a particular product: Standard quantity per unit: 6.2 feet $ Stand price per foot: 13.60 The following data pertain to operations concerning the product for the last month: Actual materials purchased: 1,000 feet Actual cost of materials purchased: $ 13,300.00 Actual materials used in production: 400 feet Actual output: 60 units What is the materials price variance for the month? What is the materials quantity variance for the month? Variance Problem 2 The following labor standards have been established for a particular product: Standard labor hours per unit of output 2.8 hours Standard labor rate per hour $ 11.50 The following data pertain to operations concerning the product for the last month: Actual time worked: 6,900 hours Actual total labor cost: $ 80,385 Actual output: 2,300 units What is the labor rate variance for the month? What is the labor efficiency variance for the month? Variance Problem 3 Thompson Company uses a standard cost system for its single product. The following data are available: Actual experience for the year: Purchases of raw materials (15,000 yards at $13): $ 195,000 Raw material used in production: 12,000 yards Direct labor costs (10,200 hours at $10): $ 102,000 Units produced: 12,600 Standards per unit of product: Raw materials: 1.1 yards at $15 per yard Direct labor: 8 hours at $9.50 per hour What is the materials price variance for the year? What is the materials quantity variance for the year? What is the labor rate variance for the year? What is the labor efficiency variance for the year? Page 110 of 185

Answer 1

+ Variance pooblem: 1 so SP - A o purchased Ace used 6.2 feet 13.60 1000 feet 400 a - Roa: material price Doriance material quantity Variance $ 300 $300 favorable unfavorable o Price variance = Ao purchased [ SP-APJ = 1000 feet ($13.60 $13.30) 1000 feet (0.3] $ 300 favorable variance is favorable because achou cost is less than standard cost. Achial price pes foot = $ 13300 = 1000 = $13.3 pes FOOL 21 material quantity vonance SPCAQ Used - Se allowed) - S 13.60 400-372] - $380.8 unfavorable I so allowed = 60 units X 6.2 Per feet