Question

Variance Analysis 2 Insert a formula into each cell containing a ? 3 4 chatham Company produces a beach towel and incurs the fallowing variable manufacturing costs 5 Std Price/Rate Б Std Qty 7 1.80 per yd 8Direct material (clath) 3 yds Direct labor 9 12.00 per hour 0.75 hours 10 Variable /H (based an direct labor haurs) 4.00 ner bour 0.75 hours 11 12 Standard Cost per Unit: Std Cast per towel 13 14 Direct Material S.4D 15 Direct Lahor 9.00 16 Variable /H 3.00 17 Total Std Cost per Unit 17.40 18 19 Chatham incurred the follawing variable manufacturing costs in April: 20 Units praduced 600 21 Actual Cost Actual Qty 22 Actual Price/Rate 23 Direct materials $1.40 per yd 1920 yds $2,698.00 24 Direct labor 25 Variable O/H 26 Tatal Actual cast $11.60 per hour $5,104.00 440 haurs $4.90 per hour 440 haurs $2,156.00 $9.948.00 27 28 Variance Calculations 29 Direct Material Variances 30 31 32 Total Spending Variance 33 Standard Actual Variance $2,688.00 34 3,240.00 552.00 35 36 Price Actual Qty 37 Difference in pricex Variance Sheet

Answer 1

Solution:

Direct Material Variances Price Difference in price x Actual Qty = 0.40 1920 Variance $ 768.00 Quantity Difference in quantity x Standard Price = 120 $ 1.80 Variance $ 216.00 Direct Labor Variances Spending Standard Actual = 5,104 Variance $ 296.00 $ 5,400 $ Rate Actual Qty = Difference in price x 0.40 Variance $ 176.00 $ 440 Quantity Difference in quantity x Standard Price = 10 $ 12.00 Variance $ 120.00 Variable O/H Variances Spending Standard 1,800 $ Actual = 2,156 Variance $ 356.00 Rate Difference in price x $ 0.90 Actual Qty = 440 Variance $ 396.00 Quantity Difference in quantity x Standard Price = 10 $ 4.00 Variance $ 40.00

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