Answer
Actual DATA for |
2300 |
units |
|
Quantity (AQ) |
Rate (AR) |
Actual Cost |
|
Direct Material |
8800 |
$ 5.75 |
$ 50,600.00 |
Direct labor |
1000 |
$ 10.58 |
$ 10,580.00 |
Variable Overhead |
1000 |
$ 4.60 |
$ 4,600.00 |
Standard DATA for |
2300 |
units |
|
Quantity (SQ) |
Rate (SR) |
Standard Cost |
|
[A] |
[B] |
[A x B] |
|
Direct Material |
( 3.5 yards x 2300 units)=8050 yards |
$ 6.80 |
$ 54,740.00 |
Direct labor |
( 0.5 hours x 2300 units)=1150 hours |
$ 9.00 |
$ 10,350.00 |
Variable Overhead |
( 0.5 hours x 2300 units)=1150 hours |
$ 2.40 |
$ 2,760.00 |
Material Price Variance |
$ 9,240.00 |
Favourable-F |
Material Quantity Variance |
$ 5,100.00 |
Unfavourable-U |
Labor Rate Variance |
$ 1,580.00 |
Unfavourable-U |
Labour Efficiency Variance |
$ 1,350.00 |
Favourable-F |
Variable Overhead Rate Variance |
$ 2,200.00 |
Unfavourable-U |
Variable Overhead Efficiency Variance |
$ 360.00 |
Favourable-F |
Material Price Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Quantity |
( |
$ 6.80 |
- |
$ 5.75 |
) |
x |
8800 |
9240 |
||||||
Variance |
$ 9,240.00 |
Favourable-F |
||||
Material Quantity Variance |
||||||
( |
Standard Quantity |
- |
Actual Quantity |
) |
x |
Standard Rate |
( |
8050 |
- |
8800 |
) |
x |
$ 6.80 |
-5100 |
||||||
Variance |
$ 5,100.00 |
Unfavourable-U |
||||
Labor Rate Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Labor Hours |
( |
$ 9.00 |
- |
$ 10.58 |
) |
x |
1000 |
-1580 |
||||||
Variance |
$ 1,580.00 |
Unfavourable-U |
||||
Labour Efficiency Variance |
||||||
( |
Standard Hours |
- |
Actual Hours |
) |
x |
Standard Rate |
( |
1150 |
- |
1000 |
) |
x |
$ 9.00 |
1350 |
||||||
Variance |
$ 1,350.00 |
Favourable-F |
||||
Variable Overhead Rate Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Labor Hours |
( |
$ 2.40 |
- |
$ 4.60 |
) |
x |
1000 |
-2200 |
||||||
Variance |
$ 2,200.00 |
Unfavourable-U |
||||
Variable Overhead Efficiency Variance |
||||||
( |
Standard Hours |
- |
Actual Hours |
) |
x |
Standard Rate |
( |
1150 |
- |
1000 |
) |
x |
$ 2.40 |
360 |
||||||
Variance |
$ 360.00 |
Favourable-F |
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