Question

Direct Materials Variances Bellingham Company produces a product that requires 6 standard pounds per unit. The standard price is $10 per pound. If 6,300 units required 36,300 pounds, which were purchased at $10.3 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as negative number using a minus sign and an unfavorable variance as a positive number. 10,890 Unfavorable a. Direct materials price variance b. Direct materials quantity variance Favorable Unfavorable c. Total direct materials cost variance Direct Labor Variances Bellingham Company produces a product that requires 6 standard hours per unit ta standard hourly rate of $12.00 per hour. If 5,300 units required 33,100 hours at an hourly rate of $11.52 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance b. Direct labor time variance c. Total direct labor cost variance Factory Overhead Controllable Variance Bellingham Company produced 2,400 units of product that required 4.5 standard hours per unit. The standard variable overhead cost per unit is $5.30 per hour. The actual favorable variance as a negative number using a minus sign and variable factory overhead was $58,330. Determine the variable factory overhead controllable variance. Enter an unfavorable variance as a positive number. Factory Overhead Volume Variance Dvorak Company produced 1,500 units of product that required 5 standard hours per unit. The standard fixed overhead cost per unit is $2.45 per hour at 6,700 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number

Answer 1

Hi

Let me know in case you face any issue:

Answers are highlighted in yellow: Instruction says, (-) sign for Favorable and Positive sign for Unfavorable. If it doesn't accept then change the all numbers as positive: Solution: Sign of amount can be +/-: a) b) Labor rate variance: Materials price variance: Standard Price (SP) Standard Rate (SR) Actual rate (AR) $ 10.00 12.00 Actual Price (AP) $ 10.30 11.52 Actual Quantity (AQ) Materials price variance (SP - AP) *Actual Qty. Actual Hours (AH) Labor rate variance (SR - AR)*Actual Hours. 33100 36300 10,890 Unfavorable 15.888 Favorable Labor quantity/efficiency variance: Standard Hours (SH) (5300*6) Materials quantity/efficiency variance: Standard Quantity (SQ) (6300*6) 31800 37800 36300 33100 Actual Quantity (AQ) Actual Hours (AH) $ 10.00 Standard Rate (SR) Labor time variance (SH-AH)*Standard Rate Standard Price (SP) Materials quantity variance (SQ-AQ)*Standard 12,00 15,600 Unfavorable $-15,000 Favorable -288 Favorable $ -4,110 Favorable Total Direct Material Cost Variance Total Direct Labor cost variance c) Actual VOH 58330 (2400 4.5)*5.30 Budgeted VOH Variable factory OH Controllable Variance 57240 1,090 Unfavorable $ (6700 2.45) d) Fixed Overhead Cost applied Budgeted Fixed Overhead 16415 (1500*5) *(2.45) 18375 1,960 Favorable Fixed Overehad Volume variance