Question

A variance analysis question for cost accounting that I am struggling with. I have parts of it completed, but there are some parts that I did not really understand. Could you please take a look and help me? I really appreciate it! Thank you very much! You may need to zoom in to see the numbers and information for this question

Part 1: Calculate direct materials price and efficiency variances. Actual Costs Incurred Flexible Budget Budgeted Input Qt. Alloved for Actual Output X Budgeted Actual Input Qt. X Actual Rate Actual Input Qt. X Budgeted Rate Direct Materials Purchases Usage 1,455,900 1.695.200 $ 1.874.500 1,380,000 75,900 Efficiency Variance 179,300 $ U Price Variance Part 2: Calculate direct manufacturing labor price, efficiency, and flexible budget variances. Flexible Budget Budgeted Input Qt. Alloved for Actual Output X Budgeted Rate Standard Costs Actual Costs Incurred Actual Input Qt. X Budgeted Rate Actual Input Qt. X Actual Rate 11.50 per pound 25.00 per hour 10.00 per direct labor hour Direct Materials 6 pounds per unit $ 0.9595 hours per unit $ Direct Manufacturing Labor Variable Manufacturing Overhead Direct Manufacturing Labor $ 535.500 525,000 Budgeted Fixed Manufacturing Overhead $1,000,000 $ 20.00 per direct labor hour 10.500 Price Variance Efficiency Variance Actual Costs Incurred Direct Materials Purchased 10.40 per pound 163,000 pounds 126,600 pounds 21,000 hours $ Flexible-Budget Variance Direct Materials Used Part 3: Calculate variable manufacturing overhead spending, efficiency, and flexible budget variances. Direct Manufacturing Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Incurred $ 25.50 per direct labor hour 9.63 per direct labor hour $ Allocated Budgeted Input Qt. Allowed for Actual Output X Budgeted Flexible Budget Actual Input Qt. X Budgeted Rate Budgeted Input Qt. Alloved for Actual Output X Budgeted Variable Manufacturing Ovetctual Costs Incurred $ 957,550 Actual Input Qt. X Actual Rate 202,230 $ 210,000 Actual Number of Units Produced 20,000 7,770 Spending Variance Efficiency Variance Never a Variance Flexible Budget Variance Part 4: Calculate fixed manufacturing overhead spending, production volume, and flexible budget variances. Same Budgeted Lump Sum Fixed Manufacturing Overheâctual Costs Incurred Flexible Budget Actual Input Qt. X Actual Ras in the (Static Budget) Regardless of Out Budgeted Input Qt. Alloved for Actual Output X Budgeted Allocated Budgeted Input Qt. Alloved for Actual Output X Budgeted 957,550 $1,000,000 $42,450 Spending Variance Never A Variance Production Volume Variance Flexible Budget Variance

Answer 1

levelget bor efficiency : Actual in plit Oty - Flexibele Vainie 8 Budgeted Ratebeedyetet inpit ot allowed for actual eut y Budysted Rote Alate i Flemilele ludget Standard - budguted japest aly allowed : input 064 for actual output e Budgeted Actical - Standard Rate Linput ory input tyd 3 25 [allooo - / 2000 0 TL 5.9595 = 25 155,81] = 3895.25 wywoutable

Std aty = 20.00 20844.19 Actual Oly Budgeted haus p. v. 9595

Elenilele Budget I Budgeted impect aty allaced for actical owpat Rite - 20844.19 X 25 521104.75_ L * Both are unfavorable setual Rate I Budgeted Rete fleniletes budget veliance - Price vesicale + Efficesy Varience = 10500 +_3895.25 ___ $14395.95 since, leath are unfavenable they will be added . 5355oo 525000 2 1104.75 To SOO 3895.as Potce variance Essicioney raiance 14395.25 fleritele ledige variance

Page Variable maneyacing emanufacturing of Cost_inlessed Flentele budget Budgeted input or Rebel for allemal Butput x budgeted : - 20844-19 xlo (trom previous Ans ) = 208441.90 Efficiency variance i - Atu cel input Qty x Budgetul - Rate - - Kenilele budget Budgeted input at allowed for actual Quipet x Buelyett Rete - 2/2010 - 203 44119 1558.31 un faveusable (Autual > Bedste Allosted Budgetel input Lety allowed for aétud Houtput X Budgeted 3_20844019 x12 = $90 8441.90 Elenilele budget vacances Spending Kamieres t Efficiency - 3717e feweseblet + 1558.81 -$ 411.19 famoulable Variance unjaran ianu is favourable because natural Rate is Pe spending varianu is favourable less than leudgeted!

202, 2304 lov_00 4.2.0844.1904_203 44119 NELLA V ance $7770 1553.3) Spentry Variance Lagucacy Vauton $621119 - Plenitale belget vacíanll.