Question text Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $17.00/lb.) $34 Actual (4,200 lb. @ $17.80/lb.) $74,760 Direct labor Standard (0.5 hr. @ $32/hr.) $16 Actual (950 hrs. @ $31/hr.) 29,450 Variable overhead Standard (0.5 hr. @ $14/hr.) $7 Actual - 14,450 Total $57 $118,660 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Materials price Answer Answer Materials efficiency Answer Answer Labor Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Labor rate Answer Answer Labor efficiency Answer Answer Variable Overhead Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Variable overhead spending Answer Answer Variable overhead efficiency Answer Answer Please answer all parts of the question. PreviousSave Answers
Direct material | ||
Actual cost | 74,760 | |
Split cost (4200*17) | 71400 | |
Standard cost (4000*17) | 68000 | |
Material price (Actual cost - Split cost) (If amount is negative then Favorable variance, otherwise unfavorable variance) | 3360 | U |
Material efficiency (Split cost - Standard cost) (If amount is negative then Favorable variance, otherwise unfavorable variance) | 3400 | U |
Direct labor | ||
Actual cost | 29,450 | |
Split cost (950*32) | 30400 | |
Standard cost (1000*32) | 32000 | |
Labor rate (Actual cost - Split cost) (If amount is negative then Favorable variance, otherwise unfavorable variance) | 950 | F |
Labor efficiency (Split cost - Standard cost) (If amount is negative then Favorable variance, otherwise unfavorable variance) | 1600 | F |
Variable overhead | ||
Actual cost | 14,450 | |
Split cost (950*14) | 13300 | |
Standard cost (1000*14) | 14000 | |
Variable overhead Spending (Actual cost - Split cost) (If amount is negative then Favorable variance, otherwise unfavorable variance) | 1,150 | U |
Variable overhead efficiency (Split cost - Standard cost) (If amount is negative then Favorable variance, otherwise unfavorable variance) | 700 | F |
Alternative method
minus sign indicate unfavorable variance. | ||
measure | Pound | |
Standard price per Pound | $ 17.00 | |
Actual price per Pound | $ 17.80 | |
2000*2 | Standard quantity in Pounds | 4000 |
Actual quantity in Pounds | 4200 | |
Standard price per Pound | 17.00 | |
Less | Actual price per Pound | -17.80 |
Difference | -0.80 | |
Multiply | Actual quantity in Pounds | 4200 |
Material price variance | $ (3,360) | |
Indicate | Unfavorable | |
Standard quantity in Pounds | 4000 | |
Less | Actual quantity in Pounds | -4200 |
Difference | -200 | |
Multiply | Standard price per Pound | 17.00 |
Material quantity variance | $ (3,400) | |
Indicate | Unfavorable |
minus sign indicate unfavorable variance. | ||
measure | Hour | |
Standard price per Hour | $ 32.00 | |
Actual price per Hour | $ 31.00 | |
2000*0.5 | Standard labor Hours | 1000 |
Actual labor Hours | 950 | |
Standard price per Hour | 32.00 | |
Less | Actual price per Hour | -31.00 |
Difference | 1.00 | |
Multiply | Actual labor Hours | 950 |
Labor price (rate) variance | $ 950 | |
Indicate | Favorable | |
Standard labor Hours | 1000 | |
Less | Actual labor Hours | -950 |
Difference | 50 | |
Multiply | Standard price per Hour | 32.00 |
Labor quantity (efficiency) variance | $ 1,600 | |
Indicate | Favorable |
minus sign indicate unfavorable variance. | ||
measure | Hour | |
Standard variable overhead rate per Hour | $ 14.00 | |
14450/950 | Actual variable overhead rate per Hour | $ 15.21 |
2000*0.5 | Standard Hours | 1000 |
Actual Hours | 950 | |
Standard variable overhead rate per Hour | 14.00 | |
Less | Actual variable overhead rate per Hour | -15.21 |
Difference | -1.21 | |
Multiply | Actual Hours | 950 |
Variable overhead spending variance | $ (1,150) | |
Indicate | Unfavorable | |
Standard Hours | 1000 | |
Less | Actual Hours | -950 |
Difference | 50 | |
Multiply | Standard variable overhead rate per Hour | 14.00 |
Variable overhead efficiency variance | $ 700 | |
Indicate | Favorable |
Question text Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs $34 $74,760 Direct material Standard (2 lb. @ $17.00/lb.) Actual (4,200 lb. @ $17.80/lb.) Direct labor Standard (0.5 hr. @ $32/hr.) Actual (950 hrs. @ $31/hr.) Variable overhead Standard (0.5 hr. @ $14/hr.) $16 29,450 $7 Actual 14,450 $118,660 Total...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs $38 $83,160 $17 Direct material Standard (2 lb. @ $19.00/lb.) Actual (4,200 lb. @ $19.80/lb.) Direct labor Standard (0.5 hr. @ $34/hr.) Actual (950 hrs. @ $33.00/hr.) Variable overhead Standard (0.5 hr. @ $16/hr.) Actual Total 31,350 $8 16,450 $130,960...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $18.00/lb.) $36 Actual (4,200 lb. @ $19/lb.) $79,800 Direct labor Standard (0.5 hr. @ $33/hr.) $16.50 Actual (950 hrs. @ $32.20/hr.) 30,590 Variable overhead Standard (0.5 hr. @ $15/hr.) $7.50 Actual 15,450 Total $60...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $18.00/lb.) $36 Actual (4,200 lb. @ $19/lb.) $79,800 Direct labor Standard (0.5 hr. @ $33/hr.) $16.50 Actual (950 hrs. @ $32.20/hr.) 30,590 Variable overhead Standard (0.5 hr. @ $15/hr.) $7.50 Actual - 15,450 Total...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation’s April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $9.00/lb.) $18 Actual (4,200 lb. @ $10.20/lb.) $42,840 Direct labor Standard (0.5 hr. @ $24/hr.) $12 Actual (950 hrs. @ $23.40/hr.) 22,230 Variable overhead Standard (0.5 hr. @ $6/hr.) $3 Actual - 6,450 Total...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Steffan Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $9.50/lb.) $19 Actual (4,200 lb. @ $10.20/lb.) $42,840 Direct labor Standard (0.5 hr. @ $24/hr.) $12 Actual (970 hrs. @ $23.40/hr.) 22,698 Variable overhead Standard (0.5 hr. @ $6/hr.) Actual 6,200 Total $71,738 Assume...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Kiosse Corporation's May operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs $13,640 Direct material Standard (3 lb. @ $2.00/lb.) Actual (6,200 lb. @ $2.20/lb.) Direct labor Standard (0.5 hr. @ $14/hr.) Actual (980 hrs. @ $13.70/hr.) Variable overhead Standard (0.5 hr. @ $4/hr.) Actual Total 13,426 $15 4,200 $31,266 Assume that...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Kiosse Corporation's May operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material $6 Standard (3 lb. @ $2.00/lb.) Actual (6,200 lb. @ $2.20/lb.) Direct labor $13,640 $7 Standard (0.5 hr. @ $14/hr.) Actual (980 hrs. @ $13.70/hr.) Variable overhead 13,426 Standard (0.5 hr. @ $4/hr.) Actual 4,200 $31,266 Total $15...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Kiosse Corporation’s May operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (3 lb. @ $2.00/lb.) $6 Actual (6,200 lb. @ $2.20/lb.) $13,640 Direct labor Standard (0.5 hr. @ $14/hr.) $7 Actual (980 hrs. @ $13.70/hr.) 13,426 Variable overhead Standard (0.5 hr. @ $4/hr.) $2 Actual - 4,200 Total...
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Steffan Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $9.50/lb.) $19 Actual (4,200 lb. @ $10.20/lb.) $42,840 Direct labor Standard (0.5 hr. @ $24/hr.) $12 Actual (970 hrs. @ $23.40/hr.) 22,698 Variable overhead Standard (0.5 hr. @ $6/hr.) $3 6,200 Actual $34 $71,738...