a. Calculate the materials' flexible budget for Job Alpha in July.
b. Calculate the materials price variance for Job Alpha.
c. Calculate the materials quantity variance for job Alpha in July.
d. Calculate the direct labor flexible budget for Job Alpha in July.
Variance analysis is a technical jargon to explain a situation where actual result differs from planned |
or expected results. It is an act of comparing standards with actual. The study of variances help in |
decision making and finding out the major areas which needs immediate attention. |
Job Alpha |
Material Flexible budget = Actual Cost - Std. cost |
( 7831 * 13.3 ) - ( 565 * 15.4 * 12.1 ) = 104152.3 - 105282.1= $ 1129.8 ( fav. ) |
MPV = ( SP - AP ) * AQ purchased |
MPV = ( 12.1 - 13.3 ) * 7831 = $ 9397.2 ( unfavourable ) |
MQV = ( SQ - AQ ) SP |
MQV = ( 565 * 15.4 - 7831 ) * 12.10 = $ 10527 ( favourable ) |
Direct labour Flexible budget = Actual Cost - Std. cost |
( 2978 * 38 ) - ( 565 * 6.2 * 33 ) = 113164 - 115599 = $ 2435 ( fav. ) |
a. Calculate the materials' flexible budget for Job Alpha in July. b. Calculate the materials price...
a. If the company uses a normal costing system,
calculate the costs incurred by Job Alpha in
July.
b. If the company uses a standard costing
system, calculate the costs incurred by Job Alpha in
July.
2. A company has the following information for Job Alpha during July: Units produced Actual materials used (and purchased) 565 7,831 Ibs. $ 13.30 per pound Actual Materials Cost Actual labor hours incurred 2,978 Actual labor rate 38.00 per hour The company applies manufacturing...
Required information Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 [The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.6 hrs. $11.00 per hr.) Overhead (1.6 hrs. @ $18.50 per hr.) Total standard cost $20.00 17.60 29.60 567.20 The predetermined overhead rate ($18.50 per...
Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 [The following information applies to the questions displayed below) Antuan Company set the following standard costs for one unit of its product 24.00 Direct materials (4.0 lbs. $6.00 per tb.) Direct labor (1.7 hrs. $12.00 per hr.) Overhead (1.7 hrs. $18.50 per hr.) Total standard cost foto The predetermined overhead rate ($18.50 per direct labor hour) is based on...
Standard Cost and Flexible Budget. Brier Company produces car covers. The company's master budget shows the following standards information. Expected production for September 5,000 units 29. Direct materials 8 yards per unit at $5 per yard Direct labor 3 hours per unit at $16 per hour Variable manufacturing overhead Required: a. Caleulate the standard cost per unit for direct materials, direct labor, and variable manufacturing overhead using the format shown in Figure 10.1. 3 direct labor hours per unit at...
a. Calculate the direct materials price variance.
b. Calculate the direct materials usage variance.
c. Calculate the direct labor rate variance.
d. Calculate the direct labor efficiency variance.
e. Calculate the variable overhead rate variance.
f. Calculate the variable overhead efficiency variance.
g. Calculate the Sales Price variance
h. Calculate the Sales Quantity Variance
Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are...
Problem 21-3A Flexible budget preparation; computation of
materials, labor, and overhead variances; and overhead variance
report LO P1, P2, P3, C2 [The following information applies to the
questions displayed below.]
Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 [The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. Direct materials (3.0 Ibs. @ $6.00 per...
Problem 8-3A Flexible budget preparation, computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 (The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product Direct materials (6 lbs. @ $5 per Ib.) Direct labor (2 hrs. $17 per hr.) Overhead (2 hrs. $18.58 per hr.) Total standard cost The predetermined overhead rate ($18.50 per direct labor hour) is based on an...
Problem 21-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, C2 [The following information applies to the questions displayed below.) Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $5.00 per Ib.) Direct labor (1.9 hrs. @ $10.00 per hr.) Overhead (1.9 hrs. @ $18.50 per hr.) Total standard cost $20.00 19.00 35.15 $74.15 The predetermined overhead rate ($18.50 per direct...
3.) The performance report for Clouse Company showed the flexible budget for direct materials as $100,000 and actual direct materials as $86,000. This means there was a $14,000 unfavorable variance for the period. True or False 4.) Benny’s Bakery produces bagels for resale at local grocery stores. The master budget indicates that the company expects to use 2.5 pounds of direct materials for each unit produced at a cost of $10.00 per pound (one unit = one batch of bagels)....
Matthews & Bros. is a local landscape construction company. In analyzing financial performance, the cost accountant compares actual results with a flexible budget. The standard direct labor rates used in the flexible budget are established each year at the time the annual plan is formulated and held constant for the entire year. The standard direct labor rates in effect for the current fiscal year and the standard hours allowed for the actual output of work for July are shown in the...