Req a: | |||||||
Material Price variance: | |||||||
Std price per unit: 16 per unit | |||||||
Actual price per unit: 17 per unit | |||||||
Actual Qty purchased: 21000 units | |||||||
Material price variance: Actual Qty purchased (Std price-Actual price) | |||||||
21000 (16-17) = 21000 Unfav | |||||||
Req b: | |||||||
Std price:16 | |||||||
Actual qty used: 33400 | |||||||
Std Qty allowed (22400*1.50) = 33600 | |||||||
Material Qty variance: Std price (Std qty-Actual qty used) | |||||||
16 (33600-33400) = 3200 Fav | |||||||
Req c: | |||||||
Std rate per hour; 8 | |||||||
Actual rate per hour: 8 | |||||||
Actual hours worked: 16750 | |||||||
Labour rate variance: Actual hours (Std rate-Actual rate) | |||||||
16750 (8-8) = Nil | |||||||
Req d: | |||||||
Std rate: 8 | |||||||
Actual Hours: 16750 | |||||||
Std hours (22400*0.75) = 16800 | |||||||
Labourn efficiency variance = Std rate (Std hours-Actual hours) | |||||||
8 ( 16800 -16750 )= 400 fav | |||||||
Req e: | |||||||
Std variable OH rate peer hour: 3 | |||||||
Actual rate per hour (48575/16750) = 2.90 per hour | |||||||
Actual hours: 16750 | |||||||
Vvariable OH rate variance: Actual hours (Std rate - Aactual rate) | |||||||
16750 ( 3.00-2.90) = 1675 Fav | |||||||
Req f: | |||||||
Std rate: 3.00 | |||||||
Actual hours: 16750 | |||||||
Std hours allowed: 16800 | |||||||
Variable OH efficiency variance: Std rate (Std hours-Actual hours) | |||||||
3.00 ( 16800-16750) = 150 fav | |||||||
Problem 9. Variance Analysis Bronfenbrenner Co. uses a standard cost system for its single product in...
Problem 9. Variance Analysis Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given: Standard costs per unit: Raw materials (1.5 grams x S16 per gram) Direct labor (0.75 hours x S8 per hour) S6.00 Variable overhead (0.75 hours × $3 per $24.00 S2.25 hour) Actual experience for current year Units produced Purchases of raw materials (21,000 grams x S17 per...
Hurren Corporation makes a product with the following standard costs: Standard Standard Price Standard Cost Quantity or Per Unit or Rate Hours $8.00 per gram Direct materials 4.0 grams $32.00 $7.20 $12.00 per hour Direct labor 0.6 hours Variable $8.00 per hour $4.80 0.6 hours overhead The company reported the following results concerning this product in June. 7,300 Originally budgeted output units Actual output 7,200 units Raw materials used in production 28,340 grams 4,100 Actual direct labor-hours hours Purchases of...
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Hurren Corporation makes a product with the following standard costs: Standard Cost Standard Quantity or Standard Price or Per Unit Rate Hours $22.40 $4.00 per gram 5.6 grams Direct materials $36.10 $19.00 per hour 1,9 hours Direct labor $7.60 $4.00 per hour 1.9 hours Varlable overhead The company reported the following results concerning this product in June. Originally budgeted output 5,400 units Actual output 5,300 units Raw materials used in production 28,500 grams Actual direct labor-hours 5,700 hours Purchases...
Blue Co. makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 7.4 grams $8.00 per gram Direct labor 0.3 hours $16.00 per hour Variable overhead 0.3 hours $7.00 per hour The company reported the following results concerning this product in July. Actual output 2,200 units Raw materials used in production 16,420 grams Purchases of raw materials 17,900 grams Actual direct labor-hours 720 hours Actual cost of raw materials purchases $141,410 Actual...
Bulluck Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 3.5 grams $ 1.00 per gram Direct labor 0.7 hours $ 11.00 per hour Variable overhead 0.7 hours $ 2.00 per hour The company reported the following results concerning this product in July. Actual output 3,000 units Raw materials used in production 11,370 grams Actual direct labor-hours 1,910 hours Purchases of raw materials 12,100 grams Actual price of raw materials...
Kowaleski Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct materials 4.9 grams $ 7.00 per gram Direct labor 0.6 hours $ 14.00 per hour Variable overhead 0.6 hours $ 4.00 per hour In June the company produced 4,200 units using 21,830 grams of the direct material and 2,580 direct labor-hours. During the month the company purchased 24,100 grams of the direct material at a price of $6.80 per gram. The...
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.10 grams $ 5.00 per gram $ 30.50 Direct labor 0.20 hours $ 11.00 per hour $ 2.20 Variable overhead 0.20 hours $ 4.00 per hour $ 0.80 The company reported the following results concerning this product in June: Originally budgeted output 3,100 units Actual output 3,180 units Raw materials used in production 18,508 grams Purchases...
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.00 grams $14.00 per gram $98.00 Direct labor 0.20 hours $20.00 per hour $ 4.00 Variable overhead 0.20 hours $ 7.00 per hour $ 1.40 The company reported the following results concerning this product in June: Originally budgeted output 4,000 units Actual output 4,080 units Raw materials used in production 25,996 grams Purchases of raw materials...
Gilder Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 7.70 grams $5.00 per gram $38.50 Direct labor 0.2 hours $17.00 per hour $3.40 Variable overhead 0.2 hours $5.00 per hour $1.00 The company reported the following results concerning this product in June. Originally budgeted output 6,700 units Actual output 6,800 units Raw materials used in production 39,300 grams Purchases of raw materials...
idd Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.4 grams $2.00 per gram $8.80 Direct labor 0.5 hours $15.00 per hour $7.50 Variable overhead 0.5 hours $2.00 per hour $1.00 The company reported the following results concerning this product in November. Originally budgeted output 9,200 units Actual output 9,300 units Raw materials used in production 44,760 grams Purchases of raw materials...