Materials Quantity variance | ||||||||
(AQ used - Std Qty allowed)*SR | ||||||||
(x - 2290*3)*5 =3300U | ||||||||
5x - 34350 = 3300U | ||||||||
x | =(3300+34250)/5 | |||||||
7530 | ||||||||
a) | actual cost = | 45180/7530 | ||||||
6 | per foot | answer | ||||||
( | ||||||||
b) | Materials price variance | |||||||
(Actual rate - standard rate)*AQ purchased | ||||||||
(6 - 5)*7530 | ||||||||
7530 | U | answer | ||||||
Spending variance = | 3300U+7530U | |||||||
10830 | U | answer | ||||||
2a) | labor spending varian | 3,130 | U | |||||
labor efficiency varian | 780 | U | ||||||
labor price variance | 2350 | U | ||||||
labor rate variance = ( Actual rate - standard rate)*Actual hours | ||||||||
(32900 - 4700*x) | = | 2,350 | ||||||
x = | (32900-2350)/4700 | |||||||
6.5 | ||||||||
Standard hours | 6.5 | per hour | ||||||
b) | Standard hours = | |||||||
labor efficiency variance | ||||||||
(Actual hours - standard hours allowed)*Standard rate | ||||||||
(4700 -x ) *6.5 = 780 | ||||||||
30550 - 6.5x = 780 | ||||||||
x = (30550-780)/6.5 | ||||||||
4580 | ||||||||
Standard hours allowed | 4,580 | hours | ||||||
c) | Standard hours allowed per unit of product | |||||||
4580/2290 | ||||||||
2 | ||||||||
Standard hours allowed per unit of product | 2 | hours per unit | ||||||
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