Req-1(A)Computation of Material Price & Quanntity Variance |
Material price variance = (SP - AP) * AQ purchased ' = ($22 - $20.70) * 14000 = $18200 F |
Material quantity variance = (SQ - AQ Used ) * SP ' = (9750 Ounce - 9950 Ounce ) * $22 = $4400 U |
Refrence |
Standard qty of material = 3900 Units *2.5 Ounces= 9750 ounce |
Actual quantity of material purchased = 14000 ounce |
Actual quantity of material used = 14000 - 4050 = 9950 ounce |
Standard price of material = $22 per ounce |
Actual price of material = $289,800 / 14000 = $20.70 |
Req-1(B),Yes , Company should signed a contracct because , Material Price variance shows favourable which shows that actul material proceurement price is lesser than Standard Price. |
Req-2(a) Labour Rate & Efficiency Variance |
Direct labor rate variance = (SR - AR) * AH = ($16 - $15) * 3900 Hour = $3900 F |
Direct labor efficiency variance = (SH - AH) * SR = (3510 - 3900) * $16= $6240 U |
Req:2(b)NO, New labor mix should not be continued because Employing more assistant rather senior technician resulted in favorable direct labor rate variance but unfavorable laor efficiency variance. Further unfavorable efficiency variance is higher than favorable rate variance, |
Refrence |
Standard hours of direct labor = 3900 Unit *0.90 Hour = 3510 hours |
Standard rate of direct labor = $16 per hour |
Actual hours of direct labor = 26 Technician *150 Hour = 3900 hours |
Actual rate of direct labor = $15 per hour |
Req-3 Variable OH Rate & Efficiency Variance |
Variable overhead rate variance = (SR - AR) * AH = ($2 - $1.28) *3900 = $2808 F |
Variable overhead efficiency variance = (SH - AH) *
SR = (3510 - 3900) * $2 = $780 U |
Refrence |
Standard hours of direct labor = 3900 Unit *0.90 Hour = 3510 hours |
Standard rate of variable overhead= $2 per hour |
Actual hours of direct labor = 26 Technician *150 Hour = 3900 hours |
Actual rate of variable overhead = $5000 / 3900 = $1.28 |
Problem 10-14 Basic Variance Analysis (LO10-1, LO10-2, LO10-3] Becton Labs, Inc., produces various chemical compounds for...
Problem 10-14 Basic Variance Analysis (LO10-1, LO10-2, LO10-3] Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.20 ounces 0.70 hours 0.70 hours Standard Price or Rate $23.00 per ounce $12.00 per hour $ 3.00 per hour Standard Cost...
Problem 10-14 Basic Variance Analysis [LO10-1, LO10-2, LO10-3] Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.30 ounces 0.60 hours 0.60 hours Standard Price or Rate $17.00 per ounce $13.00 per hour $ 2.50 per hour Standard Cost...
Problem 10-14 Basic Variance Analysis [LO10-1, LO10-2, LO10-3] Becton Labs, Inc., produces various chemical compounds for Industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity or Hours 2.5 ounces 1.4 hours 1.4 hours Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Price or Rate $20.00 per ounce $22.50 per hour $ 3.50 per hour Standard Cost...
please answer the questions! thank you Problem 10-14 Basic Variance Analysis (L010-1, LO10-2, LO10-31 Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.6 ounces 0.60 hours 0.60 hours Standard Price or Rate $20.00 per ounce $16.00 per hour...
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.30 ounces 0.80 hours 0.80 hours Standard Price or Rate $24.00 per ounce $15.00 per hour $ 3.50 per hour Standard Cost $55.20 12.00 2.80 $70.00 During November, the following...
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.20 ounces 0.50 hours 0.50 hours Standard Price or Rate $25.00 per ounce $15.00 per hour $ 3.00 per hour Standard Cost $55.00 7.50 1.50 $64.00 During November, the following...
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.50 ounces 0.70 hours 0.70 hours Standard Price or Rate $19.00 per ounce $15.00 per hour $ 4.00 per hour Standard Cost $47.50 10.50 2.80 $60.80 During November, the following...
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.20 ounces 0.80 hours 0.80 hours Standard Price or Rate $16.00 per ounce $12.00 per hour $ 2.50 per hour Standard Cost $ 35.20 9.60 2.00 $ 46.80 During November,...
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials 2.00 ounces $30.00 per ounce $ 60.00 Direct labor 0.50 hours $14.00 per hour 7.00 Variable manufacturing overhead 0.50 hours $ 3.40 per hour 1.70 Total standard cost per unit $68.70 During November, the...
Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is preparec using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Complete this question by entering your answers in the tabs below. Standard Price Standard or Rate Cost Req 1A Req 1B Req 2A Req 2B Standard Quantity or Hours 2.50 ounces Req3 Direct materials $28.00 per ounce $70.00 0.50 hours $13.00 per $13.00 hour 6.50 Direct...