Question

Revise the data in your worksheet to reflect the results for the subsequent period as shown below:

A B C D E

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Chapter 09: Applying Excel Data Exhibit 9-8: Standard Cost Card Inputs Standard Quantity Standard Price Direct materials 3.0 pounds $4.00 per pound Direct labor 0.50 hours $22.00 per hour Variable manufacturing overhead 0.50 hours $6.00 per hour Actual results: Actual output 2,040 units Actual variable manufacturing overhead cost $4,816.00 Actual Quantity Actual price Actual direct materials cost 6,100 pounds $4.40 per pound Actual direct labor cost 860 hours $22.10 per hour

a-1. What is the materials quantity variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

a-2. What is the materials price variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

b-1. What is the labor efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

b-2. What is the labor rate variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your final answer to nearest whole dollar amount.)

c-1. What is the variable overhead efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

c-2. What is the variable overhead rate variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)).

Answer 1

Answer

• Working data

Actual DATA for		2040	units
	Quantity (AQ)	Rate (AR)	Actual Cost
Direct Material	6100	$                   4.40	$           26,840.00
Direct labor	860	$                22.10	$           19,006.00
Variable Overhead	860	$                   5.60	$             4,816.00

Standard DATA for		2040	units
	Quantity (SQ)	Rate (SR)	Standard Cost
	[A]	[B]	[A x B]
Direct Material	( 3 pounds x 2040 units)=6120 pounds	$                   4.00	$       24,480.00
Direct labor	( 0.5 hours x 2040 units)=1020 hours	$                22.00	$       22,440.00
Variable Overhead	( 0.5 hours x 2040 units)=1020 hours	$                   6.00	$         6,120.00

• Requirements, with calculations

[a1]

Material Quantity Variance
(	Standard Quantity	-	Actual Quantity	)	x	Standard Rate
(	6120	-	6100	)	x	$                           4.00
	80
	Variance		$                    80.00			Favourable-F

[a2]

Material Price Variance
(	Standard Rate	-	Actual Rate	)	x	Actual Quantity
(	$                               4.00	-	$                       4.40	)	x	6100
	-2440
	Variance		$              2,440.00			Unfavourable-U

[b1]

Labour Efficiency Variance
(	Standard Hours	-	Actual Hours	)	x	Standard Rate
(	1020	-	860	)	x	$                        22.00
	3520
	Variance		$              3,520.00			Favourable-F

[b2]

Labor Rate Variance
(	Standard Rate	-	Actual Rate	)	x	Actual Labor Hours
(	$                             22.00	-	$                    22.10	)	x	860
	-86
	Variance		$                    86.00			Unfavourable-U

[c1]

Variable Overhead Efficiency Variance
(	Standard Hours	-	Actual Hours	)	x	Standard Rate
(	1020	-	860	)	x	$                           6.00
	960
	Variance		$                  960.00			Favourable-F

[c2]

Variable Overhead Rate Variance
(	Standard Rate	-	Actual Rate	)	x	Actual Labor Hours
(	$                               6.00	-	$                       5.60	)	x	860
	344
	Variance		$                  344.00			Favourable-F