Homework Answers
| Variance analysis is a technical jargon to explain a situation where actual result differs from planned | |||||
| or expected results. It is an act of comparing standards with actual. The study of variances help in | |||||
| decision making and finding out the major areas which needs immediate attention. | |||||
| Barzilla Recycling | |||||
| Variances | |||||
| MPV = ( SP - AP ) * AQ purchased | |||||
| MPV = ( 1.58 - 1.6 ) * 480000 = $ 9600 ( unfavourable ) | |||||
| MQV = ( SQ - AQ ) SP | |||||
| MQV = ( 100000 * 4 - 420000 ) * 1.58 = $ 31600 ( unfavourable ) | |||||
| Total Material Variance = MPV + MQV | |||||
| 9600 + 31600 = $ 41200 ( unfav. ) | |||||
| LRV = ( SR - AR ) AH | |||||
| LRV = ( 32 - 32.6 ) 26000 = $ 15600 ( UnFavourable) ( AR = 847600 / 26000 ) | |||||
| LEV = ( SH - AH ) SR | |||||
| LEV = ( 100000 * 0.25 - 26000 ) 32 = $ 32000 ( unfavourable) | |||||
| Total labour Variance = LRV + LEV | |||||
| 15600 + 32000 = 47600 ( unfav.) | |||||
| Journal entries | |||||
| Raw materials | 758400 | ||||
| Direct material price variance (U) | 9600 | ||||
| Accounts payable ( 480000 * 1.6) | 768000 | ||||
| WIP | 726800 | ||||
| Direct materials quantity variance | 31600 | ||||
| Raw materials | 758400 | ||||
| WIP | 800000 | ||||
| DLRV | 15600 | ||||
| DLEV | 32000 | ||||
| Wages payable | 847600 | ||||
| COGS | 88800 | ||||
| Direct materials quantity variance | 31600 | ||||
| Direct material price variance (U) | 9600 | ||||
| DLRV | 15600 | ||||
| DLEV | 32000 | ||||
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A В C D E 1 Barzilla Recycling manufactures giftbags out of recycled materials 2 Actual...
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Prime costs for Teagan's Toys to produce ping pong nets for table tops are: Actual materials purchases 320,000 pounds for $1,241,600 Standard cost (to produce 1 unit) Direct materials Actual cost (to produce 38.000 units) Direct materials 285,000 pounds 8.5 pounds@ $3.60/pound Direct labor Direct labor 25 hour@$16/hour 84% of $180,000 labor costs 100,000 direct labor hours $15.12 per hour REQUIREMENT S Compute the following variances and indicate favorable or unfavorable. a. Direct Material Price Variance b. Direct Material Quantity...
Prime costs for Teagan's Toys to produce ping pong nets for table tops are: Actual materials...
Prime costs for Teagan's Toys to produce ping pong nets for table tops are: Actual materials purchases 320,000 pounds for $1,241,600 Actual cost (to produce 38.000 units): Direct materials 285,000 pounds Direct labor 84% of $180,000 labor costs 100,000 direct labor hours Standard cost (to produce 1 unit): Direct materials 8.5 pounds @ $3.60/pound Direct labor 25 hour @ $16/hour REQUIREMENTS Compute the following variances and indicate favorable or unfavorable. a. Direct Material Price Variance b. Direct Material Quantity Variance...
Prime costs for Teagan's Toys to produce ping pong nets for table tops are: Actual materials...
Prime costs for Teagan's Toys to produce ping pong nets for table tops are: Actual materials purchases 320,000 pounds for $1,241,600 Actual cost (to produce 38,000 units): Standard cost (to produce 1 unit): Direct materials Direct materials 285,000 pounds 8.5 pounds @ $3.60/pound Direct labor Direct labor 84% of $180,000 labor costs .25 hour @ $16/hour 100,000 direct labor hours REQUIREMENTS Compute the following variances and indicate favorable or unfavorable. a. Direct Material Price Variance b. Direct Material Quantity Variance...
Use the information above to compute direct labor and direct materials variances. Variable produc...
Use the information above to
compute direct labor and direct materials variances. Variable
product costs are broken down into DM, DL, and VMOH.
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Please complete fully, thanks i Data Table Kimartin Fabrics manufactures a specialty monogrammed blanket. The following...
Please complete fully, thanks
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The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used...
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Problem 5 - Materials and Labor Manufacturing Variances and Analysis Background: The following information is for...
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Prime costs for Teagan's Toys to produce ping pong nets for table tops are: Actual materials purchases 320,000 pounds for $1,241,600 Standard cost (to produce 1 unit) Direct materials Actual cost (to produce 38.000 units) Direct materials 285,000 pounds 8.5 pounds@ $3.60/pound Direct labor Direct labor 25 hour@$16/hour 84% of $180,000 labor costs 100,000 direct labor hours $15.12 per hour REQUIREMENT S Compute the following variances and indicate favorable or unfavorable. a. Direct Material Price Variance b. Direct Material Quantity...
Prime costs for Teagan's Toys to produce ping pong nets for table tops are: Actual materials purchases 320,000 pounds for $1,241,600 Actual cost (to produce 38.000 units): Direct materials 285,000 pounds Direct labor 84% of $180,000 labor costs 100,000 direct labor hours Standard cost (to produce 1 unit): Direct materials 8.5 pounds @ $3.60/pound Direct labor 25 hour @ $16/hour REQUIREMENTS Compute the following variances and indicate favorable or unfavorable. a. Direct Material Price Variance b. Direct Material Quantity Variance...
Use the information above to
compute direct labor and direct materials variances. Variable
product costs are broken down into DM, DL, and VMOH.
Actual Spending Variance U or F lexible Activity Variance U or F Budget Investigate? 11,000 Units 10,500 10,500 10,500 430,500 420,000 20,000) U 440,000 Sales 3% No ariable Expenses 339,297 34,125 373422 57,078 336,000 16,000) 31,500 1500) F 367,500 17500) F 1% No 8% Yes 2% No 9% Yes Variable COGS 352,000 $33,000 $ 385,000 $ 55,000...
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The Donovan Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Donovan's purchased and used 99,000 pounds of potatoes at a price of $0.65 per pound. During the week, 2,100 direct labor hours were incurred in the plant at a rate of $12.35 per hour. The standard price per pound of potatoes is $0.85, and the standard direct labor rate is $12.10 per hour. Standards indicate that for the number of bags of...
Please complete fully, thanks
i Data Table Kimartin Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket (Click the icon to view the standards.) Actual results from last month's production of 2,200 blankets are as follows: (Click the icon to view the actual results.) Direct materials (fabric) ............ Direct labor.... .... ....4.0 yards per blanket at $9.50 per yard ...... 1 direct labor hours per blanket at $11.00 per hour . Read the innents...
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The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used 22,000 lbs. at $4.35 per lb. 6,575 hours for a total of Actual direct labor used $128,870 Actual units produced 36,000 Budgeted standards for each unit produced are 0.50 pounds of direct material at $4.30 per pound and 10 minutes of direct labor at $20.60 per hour. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AH...
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