Answer
Actual DATA for |
30000 |
units |
|
Quantity (AQ) |
Rate (AR) |
Actual Cost |
|
Direct Material |
133000 |
$ 3.95 |
$ 525,350.00 |
Direct labor |
70000 |
$ 12.70 |
$ 889,000.00 |
Variable Overhead |
70000 |
$ 1.60 |
$ 112,000.00 |
Standard DATA for |
30000 |
units |
|
Quantity (SQ) |
Rate (SR) |
Standard Cost |
|
[A] |
[B] |
[A x B] |
|
Direct Material |
( 4.5 feet x 30000 units)=135000 feet |
$ 3.60 |
$ 486,000.00 |
Direct labor |
( 2.3 hours x 30000 units)=69000 hours |
$ 13.00 |
$ 897,000.00 |
Variable Overhead |
( 2.3 hours x 30000 units)=69000 hours |
$ 1.50 |
$ 103,500.00 |
Hrs |
Rate |
Amount |
|
Budgeted Fixed Overhead |
65000 |
$ 6.50 |
$ 422,500.00 |
Standard Fixed Overhead or Fixed Overhead absorbed |
69000 |
$ 6.50 |
$ 448,500.00 |
Actual Fixed Overhead incurred |
70000 |
6.004285714 |
$ 420,300.00 |
Material Price Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Quantity |
( |
$ 3.60 |
- |
$ 3.95 |
) |
x |
133000 |
-46550 |
||||||
Variance |
$ 46,550.00 |
Unfavourable-U |
||||
Material Quantity Variance |
||||||
( |
Standard Quantity |
- |
Actual Quantity |
) |
x |
Standard Rate |
( |
135000 |
- |
133000 |
) |
x |
$ 3.60 |
7200 |
||||||
Variance |
$ 7,200.00 |
Favourable-F |
Labor Rate Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Labor Hours |
( |
$ 13.00 |
- |
$ 12.70 |
) |
x |
70000 |
21000 |
||||||
Variance |
$ 21,000.00 |
Favourable-F |
||||
Labour Efficiency Variance |
||||||
( |
Standard Hours |
- |
Actual Hours |
) |
x |
Standard Rate |
( |
69000 |
- |
70000 |
) |
x |
$ 13.00 |
-13000 |
||||||
Variance |
$ 13,000.00 |
Unfavourable-U |
Variable Overhead Rate Variance |
||||||
( |
Standard Rate |
- |
Actual Rate |
) |
x |
Actual Labor Hours |
( |
$ 1.50 |
- |
$ 1.60 |
) |
x |
70000 |
-7000 |
||||||
Variance |
$ 7,000.00 |
Unfavourable-U |
||||
Variable Overhead Efficiency Variance |
||||||
( |
Standard Hours |
- |
Actual Hours |
) |
x |
Standard Rate |
( |
69000 |
- |
70000 |
) |
x |
$ 1.50 |
-1500 |
||||||
Variance |
$ 1,500.00 |
Unfavourable-U |
Fixed Overhead Production Budget Variance |
||||||
( |
Budgeted Fixed Overhead |
- |
Actual Fixed Overhead incurred |
) |
||
( |
$ 422,500.00 |
- |
$ 420,300.00 |
) |
||
2200 |
||||||
Variance |
$ 2,200.00 |
Favourable-F |
Fixed Overhead Production Volume Variance |
||||||
( |
Standard Fixed Overhead or Fixed Overhead absorbed |
- |
Budgeted Fixed Overhead |
) |
||
( |
$ 448,500.00 |
- |
$ 422,500.00 |
) |
||
26000 |
||||||
Variance |
$ 26,000.00 |
Favourable-F |
"Wonderful! Not only did our salespeople do a good job In meeting the sales budget this...
"Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well," said Kim Clark, president of Martell Company. "Our $18,300 overall manufacturing cost variance is only 1.2% of the $1,525,000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus...
“Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well,” said Kim Clark, president of Martell Company. “Our $18,300 overall manufacturing cost variance is only 1.2% of the $1,525,000 standard cost of products made during the year. That’s well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus...
“Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well,” said Kim Clark, president of Martell Company. “Our $18,300 overall manufacturing cost variance is only 1.2% of the $1,525,000 standard cost of products made during the year. That’s well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus...
"Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well," said Kim Clark, president of Martell Company. "Our $18,300 overall manufacturing cost variance is only 1.2% of the $1,525,000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus...
Wonderfull Not only did our salespeople do a good job in meeting the sales budget this year. but our production people did a good job in controlling costs as well said Kim Clark, president of Martell Company. "Our $48,950 overall manufacturing cost variance is only 1.6% of the $3.059.375 standard cost of products made during the year. That's welll within the 3 % parameter set by management for acceptable variances. It looks like everyone will be in line for a...
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