Solution a:
Direct Material Cost Variance | ||||||||||||
Actual Cost | Standard cost for actual quantity | Standard Cost | ||||||||||
AQ * | AP = | AQ * | SP = | SQ * | SP = | |||||||
9800 | $5.00 | $49,000.00 | 9800 | $5.10 | $49,980.00 | 9900 | $5.10 | $50,490.00 | ||||
-$980.00 | F | -$510.00 | F | |||||||||
Direct Material Price Variance | Direct Material Qty variance | |||||||||||
Direct material price variance | -$980.00 | F | ||||||||||
Direct material quantity variance | -$510.00 | F | ||||||||||
Direct material cost variance | -$1,490.00 | F |
Solution b:
Direct Labor Cost Variance | ||||||||||||
Actual Cost | Standard cost for actual quantity | Standard Cost | ||||||||||
AH * | AR = | AH * | SR = | SH * | SR = | |||||||
1940 | $16.30 | $31,622.00 | 1940 | $16.10 | $31,234.00 | 1900 | $16.10 | $30,590.00 | ||||
$388.00 | U | $644.00 | U | |||||||||
Direct Labor rate Variance | Direct Labor Efficiency Variance | |||||||||||
Direct Labor Rate variance | $388.00 | U | ||||||||||
Direct Labor Efficiency variance | $644.00 | U | ||||||||||
Direct labor cost variance | $1,032.00 | U |
Solution c:
Variable factory overhead controllable variance = Actual cost of variable overhead - Standard cost of variable overhead
= $7,150 - (1900*$3.80) = - $70 F
Fixed factory overhead volume variance = Budgeted fixed overhead - Fixed overhead applied
= $11,880 - (1900 * $6) = $480 U
Total factory overhead cost variance = - $70 F + $480 U = $410 U
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
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