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Summary of Answer | ||
Material (Answer 1) | ||
Material price variance | 15,100 | Unfavorable |
Material quantity variance | 3,150 | Favorable |
Labor (Answer 2) | ||
Labor rate variance | 10,200 | Unfavorable |
Labor efficiency variance | 2,200 | Favorable |
Variable Overhead (Answer 3) | ||
Variable overhead spending variance | 1,122 | Unfavorable |
Variable overhead efficiency variance | 400 | Favorable |
Fixed overhead (Answer 4) | ||
Fixed Overhead Budget Variance | 300 | Favorable |
Minus sign indicate Favorable variance. | ||
Measure | Pound | |
Standard price per Pound | $ 0.07 | |
Actual price per Pound | $ 0.09 | |
530000*1.5 | Standard quantity in Pounds | 795000 |
Actual quantity purchased in Pounds | 755000 | |
Actual quantity used in Pounds | 750000 | |
Actual price per Pound | 0.09 | |
Less | Standard price per Pound | -0.07 |
Difference | 0.02 | |
Multiply | Actual quantity purchased in Pounds | 755000 |
Material price variance | $ 15,100 | |
Indicate | Unfavorable | |
Actual quantity used in Pounds | 750000 | |
Less | Standard quantity in Pounds | -795000 |
Difference | -45000 | |
Multiply | Standard price per Pound | 0.07 |
Material quantity variance | $ (3,150) | |
Indicate | Favorable |
Minus sign indicate Favorable variance. | ||
Measure | Hour | |
Standard rate per Hour | $ 11.00 | |
Actual rate per Hour | $ 13.00 | |
530000*0.01 | Standard labor Hours | 5300 |
Actual labor Hours | 5100 | |
Actual rate per Hour | 13.00 | |
Less | Standard rate per Hour | -11.00 |
Difference | 2.00 | |
Multiply | Actual labor Hours | 5100 |
Labor rate variance | $ 10,200 | |
Indicate | Unfavorable | |
Actual labor Hours | 5100 | |
Less | Standard labor Hours | -5300 |
Difference | -200 | |
Multiply | Standard rate per Hour | 11.00 |
Labor efficiency variance | $ (2,200) | |
Indicate | Favorable |
Minus sign indicate Favorable variance. | ||
Measure | Hour | |
Standard variable overhead rate per Hour | $ 2.00 | |
Actual variable overhead rate per Hour | $ 2.22 | |
530000*0.01 | Standard Hours | 5300 |
Actual Hours | 5100 | |
Actual variable overhead rate per Hour | 2.22 | |
Less | Standard variable overhead rate per Hour | -2.00 |
Difference | 0.22 | |
Multiply | Actual Hours | 5100 |
Variable overhead spending variance | $ 1,122 | |
Indicate | Unfavorable | |
Actual Hours | 5100 | |
Less | Standard Hours | -5300 |
Difference | -200 | |
Multiply | Standard variable overhead rate per Hour | 2.00 |
Variable overhead efficiency variance | $ (400) | |
Indicate | Favorable |
Minus sign indicate Favorable variance. | |
Budgeted Fixed Overheads | $ 60,000 |
Actual Fixed Overheads | $ 59,700 |
Budgeted units | 600,000 |
Actual units | 530,000 |
Overhead rate =( Budgeted Fixed Overheads / Budgeted units) | |
Applied Fixed Overhead = (Budgeted Fixed Overhead Rate * Actual units) | |
Budgeted Fixed Overhead Rate (60000/600000) | $ 0.10 |
Budgeted Fixed Overheads | 60000 |
Less: Applied Fixed Overhead (0.1*530000) | -53000 |
Fixed Overhead Volume Variance | $ 7,000 |
Indicate | Unfavorable |
Actual Fixed Overheads | 59700 |
Less: Budgeted Fixed Overheads | -60000 |
Fixed Overhead Budget Variance | $ (300) |
Indicate | Favorable |
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