Question

Question 13 Partially correct Mark 0.58 out of 1.00 P Flag question Computation of Variable Cost Variances The following information pertains to the standard costs and actual activity for Tyler Company for September: Standard cost per unit Direct materials 4 units of material A $2.00 per unit 1 unit of material B $3.00 per unit Direct labor 3 hours $8.00 per hour Activity for September Materials purchased Material A 3,400 units * $2.05 per unit Material B 800 units x 53.10 per unit Materials used Material A 3.050 units Material B 705 units Direct labor used 2,050 hours $8.30 per hour Production output 700 units There were no beginning direct materials inventories. Material B (a) Determine the materials price and quantity variances. Material A Materials price variance $ 0*U Materials quantity variance 500U 0 0 (b) Determine the labor rate and efficiency variances Laborrate variance $ OXU Labor efficiency variance OXF

Answer 1

	Standard (1 unit)				Standard (700 units)				Actual (700 units)
	Qty	Price	Amount		Qty	Price	Amount		Qty	Price	Amount
A	4	$      2.00	$      8.00		2800	$      2.00	$ 5,600.00		3050	$      2.05	$ 6,252.50
B	1	$      3.00	$      3.00		700	$      3.00	$ 2,100.00		705	$      3.10	$ 2,185.50
	Material price variance =			(Standard price - Actual price) x Actual quantity
		A	=	($ 2 - $ 2.05) x 3050
			=	$ 152.50	(U)
		B	=	($ 3 - $ 3.10) x 705
			=	$   70.50	(U)
	Material quan. Variance =			(Standard quantity - Actual quantity) x Standard price
		A	=	(2800 - 3050) x $ 2.05
			=	$ 500.00	(U)
		B	=	(700 - 705) x $ 3
			=	$   15.00	(U)

Standard (1 unit)				Standard (700 units)				Actual (700 units)
Hour	Rate	Amount		Hour	Rate	Amount		Hour	Rate	Amount
3	$      8.00	$      24.00		2100	$      8.00	$ 16,800.00		2050	$      8.30	$ 17,015.00
Labor rate variance =		(Standard Rate - Actual Rate) x Actual Hours
	=	($ 8 - $ 8.30) x 2050
	=	$    615.00	(U)
Labor effi. Variance =		(Standard hours - Actual hours) x Standard Rate
	=	(2100 - 2050) x $ 8
	=	$    400.00	(F)