Question

Find the Total Spending Variance, Direct Material variance, Direct Labor Variances, and Variable O/H

Variance Analysis Insert a formula into each cell containing a ?. Chatham Company produces a beach towel and incurs the following variable manufacturing costs: Std Qty Std Price/Rate Direct material (cloth) Direct labor Variable O/H (based on direct labor hours) 3 yds 0.75 hours 0.75 hours $ $ $ 1.80 per yd 12.00 per hour 4.00 per hour Standard Cost per Unit: Std Cost per towel Direct Material 5 Direct Labor 5 Variable O/H - Total Std Cost per Unit Chatham incurred the following variable manufacturing costs in April: Units produced 600 Actual Cost 5 Direct materials Direct labor Variable O/H Total Actual cost Actual Qty 1920 440 440 yds hours hours Actual Price/Rate $1.40 per yd $11.60 per hour $4.90 per hour 5 5

Answer 1

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Chatham	Finished Units	Input per unit	Input required	Rate per unit	Amount	Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap Bitmap
Direct Material Variance
Standard Price allowed for Actual Output at Standard Price	600.00	3.00	1,800.00	1.80	3,240.00	A
Actual Quantity of Input, at Standard Price			1,920.00	1.80	3,456.00	B
Actual Quantity of Input, at Actual Price			1,920.00	1.40	2,688.00	C
Quantity Variance (B-A)					216.00	Unfavorable
Price Variance (C-B)					(768.00)	Favorable
Total Material Variance (C-A)					(552.00)	Favorable
Direct Labor Variance
Standard Hours allowed for Actual Output at Standard Rate	600.00	0.75	450.00	12.00	5,400.00	D
Actual Hours of Input, at Standard Rate			440.00	12.00	5,280.00	E
Actual Hours of Input, at Actual Rate			440.00	11.60	5,104.00	F
Efficiency Variance (E-D)					(120.00)	Favorable
Price Variance (F-E)					(176.00)	Favorable
Total Labor Variance (F-D)					(296.00)	Favorable
Variable Overhead Variance
Standard Hours allowed for Actual Output at Standard Rate	600.00	0.75	450.00	4.00	1,800.00	G
Actual Hours of Input, at Standard Rate			440.00	4.00	1,760.00	H
Actual Hours of Input, at Actual Rate			440.00	4.90	2,156.00	I
Variable overhead efficiency variance (H-G)					(40.00)	Favorable
Variable overhead Spending variance (I-H)					396.00	Unfavorable
Total Variable overhead variance (I-G)					356.00	Unfavorable
Total Spending Variance=
Total Material Variance					(552.00)	Favorable
Add: Total Labor Variance					(296.00)	Favorable
Add: Total Variable overhead variance					356.00	Unfavorable
Total Spending Variance=					(492.00)	Favorable
	J	K	L=J*K
Standard cost per unit	Input per unit	Rate per unit	Standard cost per unit
Direct Material	3.00	1.80	5.40
Direct Labor	0.75	12.00	9.00
Variable Overhead	0.75	4.00	3.00
Standard cost per unit			17.40
	M	N	O=M*N	P	Q=O/P
Actual cost per unit	Total Input	Rate per unit	Total cost	Total Units	Actual cost per unit
Direct Material	1,920.00	1.40	2,688.00	600.00	4.48
Direct Labor	440.00	11.60	5,104.00	600.00	8.51
Variable Overhead	440.00	4.90	2,156.00	600.00	3.59
Standard cost per unit			9,948.00		16.58