Question

The following data were drawn from the records of Solomon Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 4,100 units 4.00 pounds @ $1.60 per pound 2.10 hours @ $5.00 per hour $ 18,450 4,500 units 3.60 pounds @ $2.00 per pound 2.30 hours @ $4.60 per hour $14,450 Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Solomon uses the number of units as the allocation base. f. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U). g. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Req A Reg B Reqc Req D Reg E to G Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. (Round "Standard price" and "Actual price" to 2 decimal places.) Materials Variance Information Table Standard price Actual price Standard quantity for flexible budget Actual quantity used per pound per pound pounds pounds

Answer 1

As per HOMEWORKLIB RULES, we can answer only 4 sub questions in a single question, i am answering the first 4 questions, this is for quality ensurance purpose, student may re upload the remaining questions.

1. Material varience information table and variences,

   1. Material varience information table	qty/amt
      Standard price	1.6	Per pound
      Actual price	2.0	Per pound
      Standard quantity for flexible budget	18,000*	Pounds
      Actual quantity used	16,200**	Pounds

      * 4,500 units * 4 pounds per unit, ** 4,500 units * 3.6 pounds per unit

   2. Varience		F/U
      Material price varience*	6,480	U
      Material usage varience**	3,600	F

      *  (Standard unit price - Actual unit price) * Actual Quantity used = (2-1.6)*16,200. **  (Standard usage - Actual usage) x Standard price per unit = (18000 - 16200) * 2.

2. Labour varience information table and labour variences,

   1. Labour varience information table	qty/amt
      Standard price	5.0	Per pound
      Actual price	4.6	Per pound
      Standard hours for flexible budget*	9,450	Pounds
      Actual hours**	10,350	Pounds

      * 4500 units * 2.1 hours = 9,450 ** 4,500 units * 2.3 = 10,350

   2. Varience		F/U
      Labour price varience*	4,140	F
      Labour usage varience**	4,500	U

      * (Standard price - actual price)*actual hours = (5-4.6)*10,350 ** (Standard hours - actual hours)*standard price = (9,450 - 10,350) * 5