Question

Use the following information to answer questions 5 through 8: Actual results Budget data 20,000 units produced and sold 19,000 units planned $1,806,700 $90 Direct materials: 62,300 units of input purchased and used @ $29 per input unit - 2.575 Direct labor: 51,500 hours used per output unit @ $21.50 per hour Direct materials: 3 units of input allowed per output unit @ $30 per input unit 47,500 Direct labor: 2.5 hours of input allowed per output unit @ $20 per hour 1,107,250 5. What is the materials price variance? a. $62,300 Unfavorable b. 562,300 Favorable c. $69,000 Favorable d. $77,250 Favorable 6. What is the materials total cost variance? a. $7,500 Unfavorable b. $11,250 Unfavorable c. $7,500 Favorable d. $6,700 Unfavorable Pr 7. What is the labor price variance? a. $77,250 Unfavorable b. $30,000 Unfavorable c. $62,300 Favorable d. $69,000 Unfavorable 8. What is the labor efficiency variance? a. $77,250 Unfavorable b. $30,000 Unfavorable c. $62,300 Favorable d. $69.000 Unfavorable 9. Which of the following statements regarding variable overhead variances is correct? a. The variable overhead price variance could have occurred because actual costs are different from those expected. b. The relationship between variable production overhead costs and the basis chosen is perfect c. The variable overhead price variance usually contains only the efficiency items. d. The variable overhead efficiency variance is related to the use of variable costs.

Answer 1

As per HOMEWORKLIB RULES we can answer only 4 sub questions in a single question i am answering the first 4 questions. Student may re upload the remaining questions.

Calculation of basic data to answer the questions 5 to 8,

1. Standard price of material = 30 per unit
2. Actual price of material = 29 per unit
3. Actual consumption of material = 62,300 units,
4. Standard units required = 20,000 x 3 = 60,000,
5. Standard rate of labour = 20 per hour,
6. Actual rate of labour = 21.5 per hour
7. Actual hours worked = 51500 hours,
8. Standard hours required = 20000 x 2.5 hours = 50000 hours.

5. Material price varience = (Standard price - actual price) x Actual consumption = (30 - 29) x 62,300 = 62,300 Favourable.

6. Material cost varience = (standard price x standard consumption) - (actual price x Actual consumption) = (30 x 60,000) - (29 x 62,300) = 6,700 Unfavourable.

7. Labour price varience = (standard rate - actual rate) x Actual hours worked = (20 - 21.5) x 51500 = 77,250 Unfavourable.

8. Labour efficiency varience = (standard hours - actual hours) x standard rate = (50000 - 51500) x 20 = 30,000 Unfavourable.