A. Compute the actual cost per foot for materials for
March
Actual Cost | per foot |
Compute the price variance and the spending variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance))
Price Variance | Unfavorable | |
Spending Variance | Unfavorable |
For direct labor: a. Compute the standard direct labor rate per hour. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
b. Compute the standard hours allowed for the month’s production.
c. Compute the standard hours allowed per unit of product. (Round your answer to 1 decimal place.)
|
Materials Quantity variance | ||||||||||
(AQ used - Std Qty allowed)*SR | ||||||||||
(x - 3280*3)*5 =3300U | ||||||||||
5x - 49200 = 3300U | ||||||||||
x | =(3300+49200)/5 | |||||||||
10500 | ||||||||||
a) | actual cost = | 57,250/10500 | ||||||||
5.45 | per foot | answer | ||||||||
( | ||||||||||
b) | Materials price variance | |||||||||
(Actual rate - standard rate)*AQ purchased | ||||||||||
(5.45 - 5)*10,500 | ||||||||||
4750 | U | answer | ||||||||
Spending variance = | 3300+4750 | |||||||||
8050 | U | answer | ||||||||
2a) | labor spending varian | 1,010 | F | |||||||
labor efficiency varian | 160 | F | ||||||||
labor price variance | 850 | F | ||||||||
labor rate variance = ( Actual rate - standard rate)*Actual hours | ||||||||||
(38,350- x*4900) | = | 850 | ||||||||
x = | (38350+850)/4900 | |||||||||
8 | ||||||||||
Standard hours | 8 | per hour | ||||||||
b) | Standard hours = | |||||||||
labor efficiency variance | ||||||||||
(Actual hours - standard hours allowed)*Standard rate | ||||||||||
(4900 -x ) *8 = 160 | ||||||||||
39200 - 8x = 160 | ||||||||||
x = (39200+160)/8 | ||||||||||
4920 | ||||||||||
Standard hours allowed | 4,920 | hours | ||||||||
c) | Standard hours allowed per unit of product | |||||||||
4920/3280 | ||||||||||
1.5 | ||||||||||
Standard hours allowed per unit of product | 1.5 | hours per unit | ||||||||
A. Compute the actual cost per foot for materials for March Actual Cost per foot Compute...
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