(1) material price variance = Actual quantity* actual price-Actual quantity * standard price
= $42,000- (8400 yards * $7.3***)
=$42,000-$61,320
=$19,320 favorable [ As the actual cost is lesser than standard the variance is favorable]
***per yard standard cost = $29.20/4.0 yard
=$7.3
(2) Material Quantity variance = Actual quantity * standard price - standard quantity* standard price
=[8400*$7.3]-[60001yards*$7.3]
=$17,520 unfavorable [ as the actual quantity is more than the standard allowed the variance is unfavorable]
1standard quantity for actual sets of cover = 1500 actual sets* 4 yards per set
=6,000 yards.
(3) Labor rate variance
Actual hour* actual rate - Actual Hours*standard rate
$6,300 - [700*$8**]
=$700 unfavorable [ the actual rate is higher than standard rate the variance is unfavorable]
**standard rate = $8120/1015hours
=$8 per hour
(4)
labor efficiency variance
Actual hour * standard rate - standard hour*standard rate
= (700*$8)-(750*$8)
=$400 favorable
standard hours per unit = 1015hours/ 2030sets
=0.5 hour
standard hour allowed for actual production = 1500*0.5 = 750hours
(5) variable overhead rate variance
Actual hour* actual rate - Actual hour*standard rate
=$3150 - (700*$3.8)
=$3150-$2660
=$490 unfavorable [ as the actual is higher than standard the variance is unfavorable]
standard rate per hour = $3857/1015
=$3.8
(6) efficiency variance
Actual hours*standard rate - standard hour*standard rate
=(700*$3.8) - (750*$3.8)
=2660-2850
=$190 favorable [ as the actual hours used are lesser than standard allowed the variance is favorable]
Problem 10-9 (Algo) Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto acce...
Problem 10-9 (Algo) Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3) Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 995 hours each month to produce 1,990 sets of covers. The standard costs associated...
Problem 10-9 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 990 hours each month to produce 1,980 sets of covers. The standard costs associated...
Problem 10-9 (Algo) Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,005 hours each month to produce 2,010 sets of covers. The standard costs associated...
Problem 10-9 Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,030 hours each month to produce 2,060 sets of covers. The standard costs associated with...
Problem 10-9 Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,020 hours each month to produce 2,040 sets of covers. The standard costs associated with...
Problem 10-9 Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 990 hours each month to produce 1,980 sets of covers. The standard costs associated with...
Problem 10-9 Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,000 hours each month to produce 2,000 sets of covers. The standard costs associated with...
Problem 10-9 Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 995 hours each month to produce 1,990 sets of...
Problem 10-9 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,055 hours each month to produce 2,110 sets of covers. The standard costs associated...
Problem 10-9 (Algo) Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 980 hours each month to produce 1,960 sets of covers. The standard costs associated...