Solution a:
Direct Material Cost Variance | ||||||||||||
Actual Cost | Standard cost for actual quantity | Standard Cost | ||||||||||
AQ * | AP = | AQ * | SP = | SQ * | SP = | |||||||
8200 | $5.30 | $43,460.00 | 8200 | $5.40 | $44,280.00 | 8300 | $5.40 | $44,820.00 | ||||
-$820.00 | F | -$540.00 | F | |||||||||
Direct Material Price Variance | Direct Material Qty variance | |||||||||||
Direct material price variance | -$820.00 | F | ||||||||||
Direct material quantity variance | -$540.00 | F | ||||||||||
Direct material cost variance | -$1,360.00 | F |
solution b:
Direct Labor Cost Variance | ||||||||||||
Actual Cost | Standard cost for actual quantity | Standard Cost | ||||||||||
AH * | AR = | AH * | SR = | SH * | SR = | |||||||
1640 | $18.00 | $29,520.00 | 1640 | $17.70 | $29,028.00 | 1600 | $17.70 | $28,320.00 | ||||
$492.00 | U | $708.00 | U | |||||||||
Direct Labor rate Variance | Direct Labor Efficiency Variance | |||||||||||
Direct Labor Rate variance | $492.00 | U | ||||||||||
Direct Labor Efficiency variance | $708.00 | U | ||||||||||
Direct labor cost variance | $1,200.00 | U |
Solution c:
Variable factory overhead controllable variance = Actual cost of variable overhead - Standard cost of variable overhead
= $5,070 - (1600*$3.20) = - $50 F
Fixed factory overhead volume variance = Budgeted fixed overhead - Fixed overhead applied
= $8,517 - (1600 * $5.10) = $357 U
Total factory overhead cost variance = - $50 F + $357 U = $307
U
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical...
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