Question

The North Point plant of Erickson Electronics Company has the following standards for component​ C93:

Requirement​ (a) Compute the total direct material cost variance and indicate whether the variance is favorable or​ unfavorable:

Determine the​ formula, then compute the total direct material cost variance.

Requirement​ (b) Compute the total direct labor cost variance and indicate whether the variance is favorable or​ unfavorable:

Determine the​ formula, then compute the total direct labor cost variance.

Requirement​ (c) Compute the total variable support cost variance and indicate whether the variance is favorable or​ unfavorable:

Determine the​ formula, then compute the total variable support cost variance.

Requirement​ (d) Compute the direct material price variance and indicate whether the variance is favorable or​ unfavorable:

Determine the​ formula, then compute the direct material price variance.

Requirement​ (e) Compute the direct material quantity variance and indicate whether the variance is favorable or​ unfavorable:

Determine the​ formula, then compute the direct material quantity variance.

Requirement​ (f) Compute the direct labor rate variance and indicate whether the variance is favorable or​ unfavorable:

Determine the​ formula, then compute the direct labor rate variance.

Requirement​ (g) Compute the direct labor efficiency variance and indicate whether the variance is favorable or​ unfavorable:

Determine the​ formula, then compute the direct labor efficiency variance.

Requirement​ (h) Compute the variable support rate variance and indicate whether the variance is favorable or​ unfavorable:

Determine the​ formula, then compute the variable support rate variance.

Requirement​ (i) Compute the variable support efficiency variance and indicate whether the variance is favorable or​ unfavorable:

Determine the​ formula, then compute the variable support efficiency variance.

The North Point plant of Erickson Electronics Company has the following standards for component C93: (Click on the icon to view the standards per unit.) Requirements Requirement (a) Compute the total direct material cost variance and indicate whether the variance is favorable or unfavorable: 1 Data Table Determine the formula, then compute the total direct material cost variance. (Round applicable dollar amounts to the nearest cent. l the label blank.) = Total direct material cost variance Standards: Material Requirement (b) Compute the total direct labor cost variance and indicate whether the variance is favorable or unfavorable: Determine the formula, then compute the total direct labor cost variance. (Round applicable dollar amounts to the nearest cent. Lab label blank.) 2.5 units of material B $13 per unit of B 0.5 hours $9 per direct labor hour $28 per direct labor hou = Total direct labor cost variance Material price Direct labor Wage rate Variable support cost rate Actual results for May Used 13,500 units of B, purchased at $12.80 per unit of B Paid for 2,500 direct labor hours at $9.30 per hour Incurred $65,000 of variable support costs Manufactured 5,000 units of component C93 Requirement (c) Compute the total variable support cost variance and indicate whether the variance is favorable or unfavorable: Determine the formula then comnute the total variable siinnort cost variance (Round annlirahle dollar amounts to the nearest ren Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Part A

Actual direct material cost	-	standard direct material cost	=	Total direct material cost variance
172800	-	162500	=	$10300	U

13500*12.80 = 172800

(5000*2.5*13) = 162500

Part B

Actual direct labor cost	-	standard direct labor cost	=	Total direct labor cost variance
23250	-	22500	=	$750	U

2500*9.30 = 23250

5000*0.5*9 = 22500

Part C

Actual variable support cost	-	standard variable support cost	=	Total variable support cost variance
65000	-	70000	=	$5000	F

5000*0.5*28

Part D

(AP– SP) × AQ	=	Direct material price variance
(12.80-13) x 13500		$2700	F

Part E

(AQ– SQ) × SP	=	Direct material quantity variance
(13500-12500) x 13		$13000	U

5000*2.5 =12500

Part F

(AR– SR) × AH	=	Direct labor rate variance
(9.30-9) x 2500		$750	U

Part G

(AH– SH) × SR	=	Direct labor efficiency variance
(2500-2500) x 9		0

5000*0.5 = 2500

Part H

(AR– SR) × AH	=	Variable support rate variance
(26-28) x 2500		$5000	F

Part I

(AH– SH) × SR	=	Variable support efficiency (use) variance
(2500-2500) x 9		0