1. Please list some of the problems companies have when computing unfavorable material and labor ...
1. Please list some of the problems companies have when computing unfavorable material and labor price and rate variances. What would be the cause of an unfavorable rate or volume variance? What would be the cause of an unfavorable price or efficiency variance?
Homework Answers
Material Variance is computed as Standard cost of materials to be used- Actual cost of material used. If this turns out to be positive, then Material Variance is said to be favourable and if it is negative then it is referred as Unfavourable.
Similarly Labour Variance is computed as Standard cost of labour to be used- Actual cost of labour used. If this turns out to be positive, then Material Variance is said to be favourable and if it is negative then it is referred as Unfavourable.
Both of these above variance are further broken down into Rate and Volume Variances.
- Unfavourable Material Rate Variance is caused where Actual Rate per unit of raw material exceeds Standard rate per unit of raw material. Unfavourable Material Efficiency variance is caused where Actual material used per one unit of output exceeds standard material which shall be used per unit of output.
- Unfavourable Labour Rate Variance is caused where Actual Rate per unit of Labour exceeds Standard rate per unit of Labour. Unfavourable Labour Efficiency variance is caused where Actual Labour used per one unit of output exceeds standard labour which shall be used per unit of output.
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1. Please list some of the problems companies have when computing unfavorable material and labor ...
Richetti Band Uniforms uses a standard costing system. The standard material and labor costs for producing...
Richetti Band Uniforms uses a standard costing system. The
standard material and labor costs for producing a marching band hat
are as follows:
Materials (0.90 yards × $11.70)
$10.53
Direct labor (1.20 hours × $13.30)
$15.96
During May, the company produced 3,770 band hats; 4,400 yards of
material were purchased for $42,240, and 3,270 yards of material
were used in production. Also during May, 4,790 direct labor hours
were worked at a cost of $57,480. Calculate material price and
quantity...
Lawn Band Uniforms uses a standard costing system. The standard material and labor costs for producing...
Lawn Band Uniforms uses a standard costing system. The standard
material and labor costs for producing a marching band hat are as
follows:
Materials (0.90 yards ×
$12.20)
$10.98
Direct labor (1.20 hours ×
$13.70)
$16.44
During May, the company produced 3,290 band hats; 4,340 yards of
material were purchased for $44,702, and 3,300 yards of material
were used in production. Also during May, 4,710 direct labor hours
were worked at a cost of $61,230. Calculate material price and
quantity...
Direct Labor: Quantity, 0.26 hour Rate, $13.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.62...
Direct Labor: Quantity, 0.26 hour Rate, $13.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.62 per kilogram Actual material purchases amounted to 243,600 kilograms at $0.650 per kilogram. Actual costs incurred in the production of 42,000 units were as follows: Direct labor: Direct material: $160,776 for 12,180 hours $141,960 for 218,400 kilograms Required: 1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate...
Exercise 11-9 Pukalani Band Uniforms uses a standard costing system. The standard material and labor costs...
Exercise 11-9 Pukalani Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards x $11.40) Direct labor (1.20 hours x $13.80) $10.26 $16.56 During May, the company produced 3,340 band hats; 3,870 yards of material were purchased for $41,022, and 3,050 yards of material were used in production. Also during May, 4,240 direct labor hours were worked at a cost of $59,360. Calculate material price...
Cinrich Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching ba...
Cinrich Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards x $11.50) Direct labor (1.20 hours x $13.20) $10.35 $15.84 During May, the company produced 3,520 band hats; 3,770 yards of material were purchased for $36,946, and 2,900 yards of material were used in production. Also during May, 4,300 direct labor hours were worked at a cost of $60,200. Calculate material price and quantity...
Please assist with the inquiry below: Material and Labor Variances The following actual and standard cost...
Please assist with the inquiry below:
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to Jones Company's production of 2,000 units of a product: Actual Costs Standard Costs Direct material 4,200 lbs. @ $4.90 4,000 lbs. @ $5.10 Direct labor 5,800 hrs. @ $9.30 6,000 hrs. @ $9.50 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F"...
o You have been invited to interview for an internship with an international food manufacturing company....
o You have been invited to interview for an internship with an international food manufacturing company. When you arrive for the interview, you are given the following information related to a fictitious Belgian chocolatier for the month of June. (Click the icon to view the data.) Read the requirements Requirement 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of May. In order to calculate the variances complete the following table....
1. How does a standard cost accounting system work, and why is it valuable to management?...
1. How does a standard cost accounting system work, and why is it valuable to management? (2) 2. What is a variance? 3. What might cause the following materials variances? i. An unfavorable materials price variance. ii. A favorable materials price variance. iii. An unfavorable materials quantity variance. iv. A favorable materials quantity variance. 4. What might cause the following labor variances? i. An unfavorable labor rate variance. ii. A favorable labor rate variance. iii. An unfavorable labor efficiency variance....
In a manufacturing area of a firm, poor product design and problems with the quality of...
In a manufacturing area of a firm, poor product design and problems with the quality of materials will, more than likely, result in a(n) ________ variance or ________ variance. Select one: a. unfavorable material price; unfavorable labor rate b. unfavorable material price; unfavorable labor usage c. favorable material efficiency; unfavorable labor price d. unfavorable material efficiency; unfavorable labor usage
Exercise 11-9 Pukalani Band Uniforms uses a standard costing system. The standard material and labor costs...
Exercise 11-9 Pukalani Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards x $12.40) Direct labor (1.20 hours x $14.30) $11.16 $17.16 During May, the company produced 3,600 band hats; 3,910 yards of material were purchased for $44,574, and 3,120 yards of material were used in production. Also during May, 4,720 direct labor hours were worked at a cost of $61,360. Calculate material price...
Richetti Band Uniforms uses a standard costing system. The
standard material and labor costs for producing a marching band hat
are as follows:
Materials (0.90 yards × $11.70)
$10.53
Direct labor (1.20 hours × $13.30)
$15.96
During May, the company produced 3,770 band hats; 4,400 yards of
material were purchased for $42,240, and 3,270 yards of material
were used in production. Also during May, 4,790 direct labor hours
were worked at a cost of $57,480. Calculate material price and
quantity...
Lawn Band Uniforms uses a standard costing system. The standard
material and labor costs for producing a marching band hat are as
follows:
Materials (0.90 yards ×
$12.20)
$10.98
Direct labor (1.20 hours ×
$13.70)
$16.44
During May, the company produced 3,290 band hats; 4,340 yards of
material were purchased for $44,702, and 3,300 yards of material
were used in production. Also during May, 4,710 direct labor hours
were worked at a cost of $61,230. Calculate material price and
quantity...
Direct Labor: Quantity, 0.26 hour Rate, $13.00 per hour Direct Material: Quantity, 5 kilograms Price, $0.62 per kilogram Actual material purchases amounted to 243,600 kilograms at $0.650 per kilogram. Actual costs incurred in the production of 42,000 units were as follows: Direct labor: Direct material: $160,776 for 12,180 hours $141,960 for 218,400 kilograms Required: 1. Use the variance formulas to compute the direct-material price and quantity variances, the direct-material purchase price variance, and the direct-labor rate and efficiency variances. Indicate...
Exercise 11-9 Pukalani Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards x $11.40) Direct labor (1.20 hours x $13.80) $10.26 $16.56 During May, the company produced 3,340 band hats; 3,870 yards of material were purchased for $41,022, and 3,050 yards of material were used in production. Also during May, 4,240 direct labor hours were worked at a cost of $59,360. Calculate material price...
Cinrich Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards x $11.50) Direct labor (1.20 hours x $13.20) $10.35 $15.84 During May, the company produced 3,520 band hats; 3,770 yards of material were purchased for $36,946, and 2,900 yards of material were used in production. Also during May, 4,300 direct labor hours were worked at a cost of $60,200. Calculate material price and quantity...
Please assist with the inquiry below:
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to Jones Company's production of 2,000 units of a product: Actual Costs Standard Costs Direct material 4,200 lbs. @ $4.90 4,000 lbs. @ $5.10 Direct labor 5,800 hrs. @ $9.30 6,000 hrs. @ $9.50 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F"...
o You have been invited to interview for an internship with an international food manufacturing company. When you arrive for the interview, you are given the following information related to a fictitious Belgian chocolatier for the month of June. (Click the icon to view the data.) Read the requirements Requirement 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of May. In order to calculate the variances complete the following table....
1. How does a standard cost accounting system work, and why is it valuable to management? (2) 2. What is a variance? 3. What might cause the following materials variances? i. An unfavorable materials price variance. ii. A favorable materials price variance. iii. An unfavorable materials quantity variance. iv. A favorable materials quantity variance. 4. What might cause the following labor variances? i. An unfavorable labor rate variance. ii. A favorable labor rate variance. iii. An unfavorable labor efficiency variance....
Exercise 11-9 Pukalani Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows: Materials (0.90 yards x $12.40) Direct labor (1.20 hours x $14.30) $11.16 $17.16 During May, the company produced 3,600 band hats; 3,910 yards of material were purchased for $44,574, and 3,120 yards of material were used in production. Also during May, 4,720 direct labor hours were worked at a cost of $61,360. Calculate material price...
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