If both favorable and unfavorable variances exist, the variances are subtracted from each other. The variance...
If both favorable and unfavorable variances exist, the variances are subtracted from each other. The variance is determined to be favorable or unfavorable based on which one is the larger amount.
True
False
Homework Answers
Answer: TRUE
Explanation:
For instance, if there is an unfavorable Direct material price variance of $1000 and a favorable Direct material quantity variance of $500, then the resultant total variance, called the Direct material cost variance will be 1000 [U]-$500 [F] = $500 [U].
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If both favorable and unfavorable variances exist, the
variances are subtracted from each other. The variance...
Calculate the variances and identify whether the variance is favorable (F) or unfavorable (U).
Complete the table below for the missing variances Calculate the variances and identify whether the variance is favorable (F) or unfavorable (U). (b) Total Direct Materials Variance (c) Total Direct Labor Variance (e) Total Variable Overhead Variance (f) Total Fixed Overhead Variance (d) Total Manufacturing Overhead Variance (a) Total Flexible Budget Product Cost Variance
Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable...
Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U). Item Budget Actual Variance For U Sales price $400 $390 Sales revenue $360,000 $390,000 $ 192,500 $180,000 Cost of goods sold Material purchases at 5,000 pounds $137,500 $140,000 Materials usage $90,000 $89,000 Production volume 950 units 900 units Wages at 4,000 hours $30,000 $29,350 Labor usage at $12 per hour $48,000 $48,500 Research and development expense $11,000 $12,500 Selling and administrative expenses $24,500...
1. If the materials price variance is $2,600 Favorable and the materials quantity and labor variances...
1. If the materials price variance is $2,600 Favorable and the materials quantity and labor variances are each $5,700 Unfavorable, what is the total materials variance (Favorable or Unfavorable)?
Calculate the flexible budget amounts and the flexible budget variances. Note whether each variance is favorable...
Calculate the flexible budget amounts and the flexible budget variances. Note whether each variance is favorable or unfavorable. Also, fill in the number of units used to calculate the flexible budget amounts. There are 16 boxes to fill in. Units 10,000 9,000 ? Actual results Original (static) budget Flexible budget Flexible budget variances Favorable or unfavorable Direct materials 66,500 58,500 ? ? ? Direct labor 80,100 67,500 ? ? ? Variance overhead 9,700 9,000 ? ? ? Fixed overhead 224,500...
Required Indicate whether each of the following variances is favorable (F) or unfavorable (U). The first...
Required Indicate whether each of the following variances is favorable (F) or unfavorable (U). The first one has been done as an example. (Select "None" if there is no effect (i.e., zero variance).) Type of Variance Item to Classify Sales volume Sales price Materials cost Materials usage Labor cost Labor usage Fixed cost spending Fixed cost per unit (volume) Standard 40,900 units 3.69 per unit $ 3.80 per pound 91,900 pounds 10.90 per hour 61,900 hours $ 409,000 $ 3.29...
Required 2 Required 1 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable....
Required 2 Required 1 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Volume Variance Volume variance Required 1 Required 3 Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no...
Identify if favorable, unfavorable or neither for all of them. Levine Inc., which produces a single...
Identify if favorable, unfavorable or neither for all of
them.
Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. $15.00 $65.00 Direct materials (10 pounds at $1.50 per pound) Direct labor (5 hours at $13.00 per hour) During the month of April, the company manufactures 180 units and incurs the following actual costs. Direct materials purchased and used (2,500 pounds) $4,250 $11,904 Direct labor (930 hours) Compute the total,...
Required Compute variances for the following items and indicate whether each variance is favorable (F) or...
Required Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): (Select "None" if there is no effect (i.e., zero variance).) Budget Variance Effect Item Actual Sales price 532 664 Sales revenue 587,000 614,000 $ $ 395,500 Cost of goods sold 367,000 Material purchases at 5,000 pounds 290,500 282,000 Materials usage 190,500 185,000 units 935 units 1,020 units Production volume $ Wages at 4,000 hours $ 59,400 61,400 Labor usage at $16 per...
Required Compute variances for the following items and indicate whether each variance is favorable (F) or...
Required Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): (Select "None" if there is no effect (i.e., zero variance).) Item V ariance Effect Sales price Sales revenue Cost of goods sold Material purchases at 5,000 pounds Materials usage Production volume Wages at 4,000 hours Labor usage at $16 per hour Research and development expense Selling and administrative expenses Budget $ 652 $ 581,000 $ 386,500 $ 276,000 $ 181,500 960 units...
Income Statement Indicating Standard Cost Variances The following data were taken from the records of Griggs...
Income Statement Indicating Standard Cost Variances The following data were taken from the records of Griggs Company for December: $100,800 Administrative expenses Cost of goods sold (at standard) Direct materials price variance-unfavorable 550,000 1,680 Direct materials quantity variance-favorable Direct labor rate variance-favorable Direct labor time variance-unfavorable Variable factory overhead controllable variance-favorable Fixed factory overhead volume variance-unfavorable Interest expense (560) (1,120) 490 (210) 3,080 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter a favorable...
Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U). Item Budget Actual Variance For U Sales price $400 $390 Sales revenue $360,000 $390,000 $ 192,500 $180,000 Cost of goods sold Material purchases at 5,000 pounds $137,500 $140,000 Materials usage $90,000 $89,000 Production volume 950 units 900 units Wages at 4,000 hours $30,000 $29,350 Labor usage at $12 per hour $48,000 $48,500 Research and development expense $11,000 $12,500 Selling and administrative expenses $24,500...
1. If the materials price variance is $2,600 Favorable and the materials quantity and labor variances are each $5,700 Unfavorable, what is the total materials variance (Favorable or Unfavorable)?
Required Indicate whether each of the following variances is favorable (F) or unfavorable (U). The first one has been done as an example. (Select "None" if there is no effect (i.e., zero variance).) Type of Variance Item to Classify Sales volume Sales price Materials cost Materials usage Labor cost Labor usage Fixed cost spending Fixed cost per unit (volume) Standard 40,900 units 3.69 per unit $ 3.80 per pound 91,900 pounds 10.90 per hour 61,900 hours $ 409,000 $ 3.29...
Required 2 Required 1 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Volume Variance Volume variance Required 1 Required 3 Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no...
Identify if favorable, unfavorable or neither for all of
them.
Levine Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. $15.00 $65.00 Direct materials (10 pounds at $1.50 per pound) Direct labor (5 hours at $13.00 per hour) During the month of April, the company manufactures 180 units and incurs the following actual costs. Direct materials purchased and used (2,500 pounds) $4,250 $11,904 Direct labor (930 hours) Compute the total,...
Required Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): (Select "None" if there is no effect (i.e., zero variance).) Budget Variance Effect Item Actual Sales price 532 664 Sales revenue 587,000 614,000 $ $ 395,500 Cost of goods sold 367,000 Material purchases at 5,000 pounds 290,500 282,000 Materials usage 190,500 185,000 units 935 units 1,020 units Production volume $ Wages at 4,000 hours $ 59,400 61,400 Labor usage at $16 per...
Required Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U): (Select "None" if there is no effect (i.e., zero variance).) Item V ariance Effect Sales price Sales revenue Cost of goods sold Material purchases at 5,000 pounds Materials usage Production volume Wages at 4,000 hours Labor usage at $16 per hour Research and development expense Selling and administrative expenses Budget $ 652 $ 581,000 $ 386,500 $ 276,000 $ 181,500 960 units...
Income Statement Indicating Standard Cost Variances The following data were taken from the records of Griggs Company for December: $100,800 Administrative expenses Cost of goods sold (at standard) Direct materials price variance-unfavorable 550,000 1,680 Direct materials quantity variance-favorable Direct labor rate variance-favorable Direct labor time variance-unfavorable Variable factory overhead controllable variance-favorable Fixed factory overhead volume variance-unfavorable Interest expense (560) (1,120) 490 (210) 3,080 2,940 Sales 868,000 Selling expenses 125,000 Prepare an income statement for presentation to management. Enter a favorable...
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