Question

Vaughn Construction Consultants performs cement core tests in its Greenville laboratory. month. he following standard costs for the tests have bean developed by the company's controller, Landon Vaughn, based on performing 2,100 care tests Standard Price Standard Quantity Standard Cost Direct materials $0.50 per pound 4 pounds 2.00 Direct labar $10 per DLH a.50 DLH 5.00 ead ived cuechead 16 $27.50 Total standard cost per test March, London reported the following operational results At the end The company actually performed 2,250 core tests during the month. 8,500 pounds of direct materials wera purchased during the month at a total ca t of $5.800. 6,400 pounds of direct materials were used to conduct the core tests. a total cus $9,820. Actual variable overhead was $7,800. Actual fixed overhead was $15.500. o 0 decimal places, e.q. 5,275 (a) Calculate the direct materials price variance for March. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer variance zero, select "Not Applicable" and enter 0 for the amounts.) Direct materials price variances (b) Calculate the direct materials quantity varlance for March. (Round answer to 0 decimal places, e.g. 5,275. If variance k zero, select "Not Applicable" and enter 0 for the amounts.) Direct materials quantity variance (c) Calculate the direct labor rate variance for March, (Round p r unit value to 2 decimal places, e.r p0 decimal places, e.a. 5.275. 52.75 and final answer f variance is zero, select "Not Applicable" and enter 0 for the amounts.) Direct labor rate variance (d) Calculate the direct labor efficiency varlance for March, (Round answer to 0 declmal places, e.q. 5,275. f variance is zero, select "Not Applicable" and enter 0 for the amounts.) Direct labar efficiency variance (e) Calculate the variable averhead spending variance March. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Variable overhead spending variance () Calculate the variable overhead efficiency variance rMarch. (Round answer to 0 decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter 0 for the amounts.) Variable averhead efficiency variance varlance is zero, select "Not Appiicable" and enter i s.275. . for the amounts,) 0 decimal places, e.g (g) Calculate the fixed overhead spending variance for March. (Round per unit value to decimal places, e.g. 52.75 and final answer

Answer 1

A B C E F 1 Direct Materials Price Variance 2 Direct Materials Price Variance = 3 Direct Materials Price Variance (Standard Cost - Actual Cost) Actual Quantity ($0.50 $0.68) * 8,500 $ 1,530 Unfavourable 4 5 Direct Materials Quantity Variance (Standard Quantity Actual Quantity) * Standard Cost 6 Direct Materials Quantity Variance=(9,000 8,500) $0.50 7 Direct Materials Quantity Variance $ 250 Favourable 8 9 Direct Labor Rate Variance 10 Direct Labor Rate Variance 11 Direct Labor Rate Variance (Standard Rate - Actual Rate) ** Actual Hours ($10 $11.69)* 840 1,419.6 Unfavourable 12 13 Direct Labor Efficiency Variance = 14 Direct Labor Efficiency Variance 15 Direct Labor Efficiency Variance (Standard Hours Actual Hours) * Standard Rate (1,125 840) $10 $ 2,850 Favourable 16 17 Variable OH Spending Variance 18 Variable OH Spending Variance 19 Variable OH Spending Variance (Standard Rate - Actual Rate) ** Actual Hours ($9 $9.29) 840 243.60 Unfavourable = = 20 21 Variable OH efficiency Variance (Standard Hours Actual Hours) * Standard Rate (1,125 - 840) $9 22 Variable OH efficiency Variance = 23 Variable OH efficiency Variance $ 2,565 Favourable 24 25 Fixed Overhead spending variance Actual Fixed Overhead Budgeted Fixed Overhead 26 Fixed Overhead spending variance $15,500 16,800 27 Fixed Overhead spending variance $ 1,300 Favourable LL.