What is the materials price variance?
What is the materials quantity variance?
What is the labour price variance?
What is the labour quantity variance?
Homework Answers
Answer:
1
Materials price variance for materials purchased
= (Actual price per unit - Standard price per unit) x Actualquntity purchased
=((31409/6410)-5)x6410
=(4.9-5)x6410
=641 favorable.
______________________________________________________________
2
Materials quantity variance
= (Actual quantity used in production - Standard quantity for actual production) x Standard price per unit
= (5,670 – (2700x2) x $5
=(5670-5400)x 5
= $1,350 Unfavorable
3
Labor price variance
= (Actual labor rate - Standard labor rate) x Actual labor hoursused in production
= ((67124/6920) - $12) x 6,920
=(9.7-12)x6920
= $15,916 Favorable
4
Labor quantity variance
= (Actual hours used in production - Standard hours for actual production) x Standard labor rate
= (6,920 – (2700x2)) x $12
= (6,920 - 5,400) x $12
= $18,2400 Unfavorable
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1. Calculate the direct materials price and quantity variance.
Please note that the materials price variance is based on actual
material purchased and the quantity variance is based on material
used.
2. Calculate the direct labor rate and efficiency variances.
3. Calculate the variable overhead spending and efficiency
variances.
4. Calculate the fixed overhead budget variance.
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Direct materials—1 pound plastic at $6.00 per pound
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Variable manufacturing overhead
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Fixed manufacturing overhead
15.00
Total standard cost per unit
$48.30
The predetermined manufacturing overhead rate is $16.00 per direct
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direct labor hours...
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