Identify if favorable, unfavorable or neither for all of them.
Answer
Actual DATA for |
180 |
units |
|
Quantity (AQ) |
Rate (AR) |
Actual Cost |
|
Direct Material |
2500 |
$ 1.70 [4250 / 2500] |
$ 4,250.00 |
Direct labor |
930 |
$ 12.80 [11904/930] |
$ 11,904.00 |
Standard DATA for |
180 |
units |
|
Quantity (SQ) |
Rate (SR) |
Standard Cost |
|
[A] |
[B] |
[A x B] |
|
Direct Material |
( 10 pounds x 180 units)=1800 pounds |
$ 1.50 |
$ 2,700.00 |
Direct labor |
( 5 hours x 180 units)=900 hours |
$ 13.00 |
$ 11,700.00 |
Total Materials Variance |
||||||
( |
Standard Cost |
- |
Actual Cost |
) |
||
( |
$ 2,700.00 |
- |
$ 4,250.00 |
) |
||
-1550 |
||||||
Variance |
$ 1,550.00 |
Unfavourable-U |
Material Price Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Quantity |
( |
$ 1.50 |
- |
$ 1.70 |
) |
x |
2500 |
-500 |
||||||
Variance |
$ 500.00 |
Unfavourable-U |
Material Quantity Variance |
||||||
( |
Standard Quantity |
- |
Actual Quantity |
) |
x |
Standard Rate |
( |
1800 |
- |
2500 |
) |
x |
$ 1.50 |
-1050 |
||||||
Variance |
$ 1,050.00 |
Unfavourable-U |
Total Labor Variance |
||||||
( |
Standard Cost |
- |
Actual Cost |
) |
||
( |
$ 11,700.00 |
- |
$ 11,904.00 |
) |
||
-204 |
||||||
Variance |
$ 204.00 |
Unfavourable-U |
Labor Price Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Labor Hours |
( |
$ 13.00 |
- |
$ 12.80 |
) |
x |
930 |
186 |
||||||
Variance |
$ 186.00 |
Favourable-F |
Labour Quantity Variance |
||||||
( |
Standard Hours |
- |
Actual Hours |
) |
x |
Standard Rate |
( |
900 |
- |
930 |
) |
x |
$ 13.00 |
-390 |
||||||
Variance |
$ 390.00 |
Unfavourable-U |
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