Question

Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Kiosse Corporation’s May operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours.

			Standard Units Costs			Total Actual Costs
Direct material
Standard (3 lb. @ $2.00/lb.)			$6
Actual (6,200 lb. @ $2.20/lb.)					$13,640
Direct labor
Standard (0.5 hr. @ $14/hr.)			$7
Actual (980 hrs. @ $13.70/hr.)					13,426
Variable overhead
Standard (0.5 hr. @ $4/hr.)			$2
Actual			-		4,200
Total			$15		$31,266

Assume that the 6,200 lb. of materials purchased were all used in producing the 2,000 completed units. Determine the materials price and efficiency variances, labor rate and efficiency variances, and variable overhead spending and efficiency variances.

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

Materials Variances
Actual cost:	Answer
Split cost:	Answer
Standard cost:	Answer
Materials price	Answer	AnswerFU
Materials efficiency	Answer	AnswerFU

Labor Variances
Actual cost:	Answer
Split cost:	Answer
Standard cost:	Answer
Labor rate	Answer	AnswerFU
Labor efficiency	Answer	AnswerFU

Variable Overhead Variances
Actual cost:	Answer
Split cost:	Answer
Standard cost:	Answer
Variable overhead spending	Answer	AnswerFU
Variable overhead efficiency	Answer	AnswerFU

Answer 1

Below answer complete relates to multiple Material , labour and overhead variance ,, Pleas see line by line .

Thank you .

The following summarized manufacturing data relate to Kiosse Corporation’s May operations
Finished units of product			2,000
Normal capacity - Direct Labour hrs			1,100
			Standard Unit cost	Total Actual cost
Direct material		Rate
Standard	3 lb	$2/lb	$6
Actual	6200lb	$2.2/lb		$13640
Direct Labour
Standard	0.5 hrs	$14/ hr	$ 7
Actual	980 hrs	$13.70/ hr		$13426
Variable Overhead
Standard	0.5 hrs	$4/ hr	$ 2
Actual				$4200
Assume that 6200 lb of material completely used
in production of 2000 completed Units
Material price variance
( Standard price - Actual price) * Actual Quantity
Standard price $/lb		2
Actual price $/lb		2.2
Actual Quantity		6200
Material price variance $			-1240	Unfavorable
(2-2.2)*6200
Material Efficiency variance
( Standard Qty on Actual output - Actual Quantity) * Standard price
Standard price $/lb		2
Actual Quantity		6200
Standard Qty on Actual output
(3lb*2000 Unit)		6000
Material Efficiency variance $		-400	Unfavorable
(6000-6200)*2
Labour rate variance
( Standard rate - Actual rate ) * Actual Hrs
Standard rate $/ hr		14
Actual \rate $/ hr		13.7
Actual hrs		980
Labour rate variance $		294	Favorable
(14-13.7)*980
Labour Efficiency ' variance
( Standard hrs on Actual output - Actual Hrs) * Standard rate / hr
Standard Hr on Actual output
(0.5hr*2000 Unit)		1000
Actual hrs		980
Standard rate $/ hr		14
Labour Efficiency ' variance $		280	Favorable
(1000-980)*14
Variable OH rate variance
( Standard rate - Actual rate ) * Actual Hrs
Standard $/hr	4
Actual hrs	980
Standrate rate*Actual hrs $	3920
Actual rate $	4200
Variable OH rate variance	-280	Unfavorable
($3920-$4200)
Variable OH Efficiency variance
( Standard Hrs - Actual Hrs ) * Standard rate
Standard hrs	1000
Actual Hrs	980
Standard rate $/ hr	14
Variable OH Efficiency variance		280	Favorable
(1000-980)*$14/hr