Question

Requirement 2: Revise the data in your worksheet to reflect the results for the subsequent period as shown below: Chapter 10: Applying Excel M Data Exhibit 10-1: Standard Cost Card Inputs Direct materials Direct labor Variable manufacturing overhead 6 Standard Quantity 3.0 pounds 0.50 hours 0.50 hours $ $ $ Standard Price 4.00 per pound 22.00 per hour 6.00 per hour 8 10 Actual results: Actual output Actual variable manufacturing overhead cost 12 $ 13 14 2,050 units 6,526.50 Actual Quantity 6,180 pounds 1,145 hours Actual direct materials cost Actual direct labor cost $ $ Actual price 3.80 per pound 22.20 per hour 15 a-1. What is the materials quantity variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)). The amount of the materials quantity variance

Answer 1

MATERIAL QUANTITY VARIENCE (Standard Qty - Actual Qty) Standard Rate [(2050 units x 3 pounds) - (6180 pounds)] x $ 4.00 = $ 120 (U) MATERIAL PRICE VARIENCE (Standard rate - Actual Rate) Actual Quantity ($ 4.00 - $ 3.80) x 6,180 pounds = $ 1,236 (F) DIRECT LABOR EFFICENCY VARIENCE (Standard Hours - Actual Hours) Standard Rate [(2050 units x 0.50 Hours) - (1145 Hours)] * $ 22.00 = $ 2,640 (U) DIRECT LABOR RATE VARIENCE (Standard rate - Actual Rate) Actual Hours ($ 22.00 - $ 22.20) 1,145 Hours = $ 229 (U) VARIABLE LABOR EFFICENCY VARIENCE (Actual Hours - Standard Hours ) x Standard Rate [(1145 Hours ) - (2050 units X 0.50 Per Hours per unit)] $ 6.00 = $ 720 (F) VARIABLE OVERHEAD RATE VARIENCE (Actual rate - Standard Rate) x Actual Hours ($ 5.70 - $6.00) x 1,145 Hours = $ 343.50 (U)