Question

S 75.00 0 hrs t0 hrs Fxed 80.00 $27 170

Answer 1

1)

Direct material price variance = ( Standard price - Actual price) * Actual quantity

Direct material price variance = ( $5-(27,170/4940)*4940

Direct material price variance = ( $5-$5.5)*4940

Direct material price variance = 2,470 Unfavorable

Direct material quantity variance = ( Standard quantity - Actual quantity)* Standard price

Direct material quantity variance = ((314*15)-4940)*$5

Direct material quantity variance = (4,710-4940)*$5

Direct material quantity variance = $1,150 Unfavorable

Direct materials spending variance = (Standrad price*Standard quantity)-(Actual quantity*Actual price)

Direct materials spending variance = ($5*4710)-(4940*$5.5)

Direct materials spending variance = $23,550-$27,170

Direct materials spending variance = $3,620 Unfavorable

2)

Direct labor rate variance = (Standard rate-Actual rate)*Actual hours

Direct labor rate variance = ($15-($48,356/3080))*3080

Direct labor rate variance = ($15-$15.7)*3080

Direct labor rate variance = $2,156 Unfavorable

Direct labor efficiency variance = (Standard hours-Actual hours)*Standard rate

Direct labor efficiency variance = ((10*314)-3080)*$15

Direct labor efficiency variance = (3140-3080)*$15

Direct labor efficiency variance = 900 Favorable

Direct labor spending variance = (Standard hours*Standard rate)-(Actual hours*Actual rate)

Direct labor spending variance = (3140*15)-(3080*$15.7)

Direct labor spending variance = 47,100-48,356

Direct labor spending variance = $1,256 Unfavorable