Question

3)   At a sales level of $30,000 units the budgeted data for materials is as follows:...

3)   At a sales level of $30,000 units the budgeted data for materials is as follows: 100,000 units at $3 each. The actual data was 200,000 units used at a price of $3 each.
a)   Compute the Materials Price Variance
b)   Compute the Materials Quantity Variance

4)   At a sales level of 30,000 the budget data for labor is as follows: 40000 hours at $15 an hour. The actual data was 40000 hours at $11.25 an hour.
A)   Compute the Labor Rate Variance.
B)   Compute the Labor Efficiency Variance.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer 3 (a) :

Material Price Variance = (Standard Price - Actual Price)*Actual Quantity

= ($3-$3)*200000

= $0

(b): Material Quantity variance = (Standard Units - Actual units)* Standard Rate

= (100000-200000)*$3

= ($300000) [Adverse]

Answer 4 (a) :

Labour Rate Variance = (Standard Rate-Actual Rate)*Actual Hour

= ($15-$11.25)*40000

= $150000 (Favorable)

Labour Efficiency Variance = ( Standard Hour-Actual Hour)*Standard Rate

= (40000-40000)*$15

= $0

Hope this meets your purpose and added contribution towards your success. Do let me know in case of any clarification.

Do like the answer if it was helpful. Best of luck..!!

  

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
5.          A company’s manufacturing plans were as follows: Units to be manufactured:       1,000 units Budgeted variable...
5.          A company’s manufacturing plans were as follows: Units to be manufactured:       1,000 units Budgeted variable costs:                      $50,000 [50q ($50 per unit)] Budgeted fixed costs:              $30,000 Budgeted mixed costs:             $20,000 [14,000 + 6q ($14,000 fixed + $6 per unit)] Later, the company actually produced 1,200 units, and incurred variable costs of $52,000; fixed costs of $31,000; and mixed costs of $21,000. The flexible budget for 1,200 units will show the total budgeted cost of $_______. The amount of the overall...
Standards (for a planned level of production of 2,200 units per month) Direct Materials: Yards per...
Standards (for a planned level of production of 2,200 units per month) Direct Materials: Yards per costume12.50yards,, Price per yard $26.00average Direct Labor: D.L. Hours per costume 62.00hours,, D.L. Rate per hour $44.50average Variable MOH standard rate per direct labor hour $4.35per D.L. hour,,Fixed MOH standard rate per direct labor hour $9.47per D.L. hour,,Total Budgeted Fixed MOH (for 1 month) $ 1,250,000 Actual cost and data from the current month: Actual number of yards of materials purchased 28,500 Actual cost...
The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used 30,000...
The following describes production activities of Mercer Manufacturing for the year. Actual direct materials used 30,000 lbs. at $5.15 per lb. Actual direct labor used 9,150 hours for a total of $186,660 Actual units produced 54,120 Budgeted standards for each unit produced are 0.50 pound of direct material at $5.10 per pound and 10 minutes of direct labor at $21.40 per hour. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ =...
Riviera Beach Pink Flamingos has the following standards and flexible-budget data. Standard variable-overhead rate $6.00 per...
Riviera Beach Pink Flamingos has the following standards and flexible-budget data. Standard variable-overhead rate $6.00 per direct-labor hour Standard quantity of direct labor 2 hours per unit of output Budgeted fixed overhead $100,000 Budgeted output 25,000 units Actual results for April are as follows: Actual output 20,000 units Actual variable overhead $320,000 Actual fixed overhead $97,000 Actual direct labor 50,000 hours Required: 1.Use the variance formulas to compute the following variances .Indicate whether each variance is favorable or unfavorable,where appropriate...
Crystal Glassware Company has the following standards and flexible-budget data.       Standard variable-overhead rate $...
Crystal Glassware Company has the following standards and flexible-budget data.       Standard variable-overhead rate $ 6.00 per direct-labor hour Standard quantity of direct labor 2 hours per unit of output Budgeted fixed overhead $ 120,000 Budgeted output 20,000 units    Actual results for April are as follows:       Actual output 14,000 units Actual variable overhead $ 252,000 Actual fixed overhead $ 111,000 Actual direct labor 40,000 hours Required: Use the variance formulas to compute the following variances. (Indicate...
The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used...
The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used 33,000 lbs. at $5.90 per lb. Actual direct labor used 10,700 hours for a total of $221,490 Actual units produced 63,000 Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.85 per pound and 10 minutes of direct labor at $21.70 per hour. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price AH...
Exercise 11-8 a The following direct materials and direct labor data pertain to the operations of...
Exercise 11-8 a The following direct materials and direct labor data pertain to the operations of Laurel Company for the month of August. Costs Actual labor rate $14 per hour Actual materials price $180 per ton Standard labor rate $13.50 per hour Standard materials price $183 per ton Quantities Actual hours incurred and used 4,900 hours Actual quantity of materials purchased and used 1,700 tons Standard hours used 4,960 hours Standard quantity of materials used 1,680 tons (a) Compute the...
Exercise 8-15 Direct materials and direct labor variances LO P2 The following information describes production activities...
Exercise 8-15 Direct materials and direct labor variances LO P2 The following information describes production activities of Mercer Manufacturing for the year. Actual direct materials used 29,000 lbs. at $5.10 per lb. Actual direct labor used 8,100 hours for a total of $164,430 Actual units produced 48,000 Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.05 per pound and 10 minutes of direct labor at $22.00 per hour. AQ = Actual Quantity SQ = Standard...
Kropf Inc. has provided the following data concerning one of the products in its standard cost...
Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 7.80 liters $ 7.40 per liter Direct labor 0.40 hours $ 25.70 per hour Variable manufacturing overhead 0.40 hours $ 6.30 per hour The company has reported the following actual results for the product for...
Kropf Inc. has provided the following data concerning one of the products in its standard cost...
Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials 7.4 liters $ 7.00 per liter Direct labor 0.70 hours $ 21.70 per hour Variable manufacturing overhead 0.70 hours $ 5.90 per hour The company has reported the following actual results for the product for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT