Standard ( 1 unit) | Standard (2425 units) | Actual (2425 units) | |||||||||
Qty | Price | Amount | Qty | Price | Amount | Qty | Price | Amount | |||
3 | $ 5.00 | $ 15.00 | 7275 | $ 5.00 | $ 36,375.00 | 8025 | $ 5.40 | $ 43,335.00 | |||
a) | Material Quantity Variance = | (Standard Quantity - Actual Quantity) x Standard Price | |||||||||
$ (3,750.00) | = | (7275 - AQ) x $ 5 | |||||||||
$ (750.00) | = | 7275 - AQ | |||||||||
AQ | = | 8025 | |||||||||
Act. Price | = | $ 43,335.00 | |||||||||
Rate | = | $ 5.40 | |||||||||
b) | Material Price Variance = | (Standard Price - Actual Price) x Actual Quantity | |||||||||
= | ($ 5 - $ 5.40) x 8025 | ||||||||||
= | $ 3,210.00 | (U) | |||||||||
Material Spending Variance = | Standard Cost - Actual Cost | ||||||||||
= | $ 36375 - $ 43335 | ||||||||||
= | $ 6,960.00 | (U) |
Standard ( 1 unit) | Standard (2425 units) | Actual (2425 units) | |||||||||
Hour | Rate | Amount | Hour | Rate | Amount | Hour | Rate | Amount | |||
1.6 | $ 6.00 | $ 9.58 | 3870 | $ 6.00 | $ 23,220.00 | 4000 | $ 7.00 | $ 28,000.00 | |||
a) | Labor Spending Variance = | (Standard Rate - Actual Rate) x Actual Hours | |||||||||
$ (2,780.00) | = | (SR - $ 7) x 4000 | |||||||||
$ (0.70) | = | SR - $ 7 | |||||||||
SR | = | $ 6 | |||||||||
b) | Labor effici. Variance | = | (Standard Hours - Actual Hours) x Standard Rate | ||||||||
$ (780.00) | = | (SH - 4000) x $ 6 | |||||||||
$ (130.00) | = | SH - 4000 | |||||||||
SH | = | 3870 | hours | ||||||||
c) | Standard hours per unit = | 3870 / 2425 units | |||||||||
= | 1.6 | hours |
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