Question

its of product w as Direct Materials. Direct Labor and Factory Overhead Cost lance is Macdna in processes a base chemical into plastic Standard costs and actual costs for Srect materials direct labor, and factory overhead incurred for the manufacture of Standard Costs Actual Costs Direct materials 207,200 lbs. at $5.00 205100 $4.80 Direct labor 15,500 $18.70 18.050 $18.90 Factory overhead Rates per direct labore based on 100% of a Capacity of 19.310 direct Variate , 3.20 Fedo, 15.10 158,610 valable cost $98.481 cost Enchiries 0.25 hour of direct labor avance ter a favorable variance as a negative numbering a mission and an o variance as a po 3. Determine the direct materials price variance, direct mais quantity warian Direct Materia Price Variance Direct Materials Quant Variance Total Direct Materials Cost Variance b. Determine the direct labor rate variance, direct labore Bale Variance Direct Labor Time Variance Total Direct Labor cost Variance Determine the variable factory overhead controllable variance, and factory overhead Varade factory overhead cor e variance Total factory overhead cost wariance

Answer 1

Please find below table useful to compute desired results: -

DE Particulars Given Standard Costs 207200 5 18500 18.7 Actual Costs 205100 4.8 18930 18.9 3 Direct Materials 4 Direct Labor 5 Factory Overhead 6 Normal Capacity 7 19310 Variable cost Fixed Cost 0.25 3.2 5.1 Variable cost 58610 Fixed Cost 98481 9 Direct Labor hours 10 11 Direct Materials Price Variance 12 Direct materials Quantity Variance 13 Total Direct Materials Cost Variance =D3*(E3-C3) =C3*(D3-B3) =B11+B12 =D3*E3-B3*C3 14 15 Direct Labor Rate Variance 16 Direct Labor time Variance 17 Total Direct Labor Cost Variance =D4*(E4-C4) =C4*D4-B4) =B15+B16 =D4*E4-B4*C4 19 Variable Factory overhead Controllable variance 20 Fixed Factory overhead volume Variance 21 Total Factory Overhead cost Variance =E7-B4*C7 =E8-B4*C8 =B19+B20 =E7+E8-B4*(C7+C8) U

End results would be as follows: -

A D E B C Particulars Given Standard Costs 207,200 5.00 18.500 18.70 Actual Costs 205,100 4.80 18,930 18.90 3 Direct Materials 4 Direct Labor 5 Factory Overhead 6 Normal Capacity 7 19,310 Variable cost Fixed Cost 0.25 3.20 Variable cost 5.10 Fixed Cost 58.610 98.481 (41,020) (10,500) (51,520) (51,520) F 9 Direct Labor hours 10 11 Direct Materials Price Variance 12 Direct materials Quantity Variance 13 Total Direct Materials Cost Variance 14 15 Direct Labor Rate Variance 16 Direct Labor time Variance 17 Total Direct Labor Cost Variance 18 19 Variable Factory overhead Controllable variance 20 Fixed Factory overhead volume Variance 21 Total Factory Overhead cost Variance 3.786 8.041 11,827 11,827U (590)| 4,131 3,541 3,541U