Question

Following information relates to Confusion Corporation Standard or Budgeted Costs Actual Costs. Material: 5kg per unit...

Following information relates to Confusion Corporation
Standard or Budgeted Costs Actual Costs.
Material: 5kg per unit @ $ 25 per unit
Labor: 4hours per unit @ $6 per unit.

3,000 units were made using 18,000 kg @$30
per unit and 38,000 hours were used @ $ 4.5
per hour.

Required: Calculate
1. Material Quantity Variance (MQV)
2. Material Price Variance (MPV)
3. Total material Variance or Overall Material Variance (TMV)
4. Labor Rate Variance (LRV)
5. Labor Efficiency Variance (LEV) & overall labor variance.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. MQV=  (standard qty- actual qty)*standard cost p.u.

= (3000*5-18000)*25

= (75000)

2. MPV= (Standard unit cost- actual unit cost)*actual quantity used

= (25-30)* 18000

=(90000)

3. Total Material cost= Budgeted cost-Actual cost

=  15000*25-18000*30

= (165000)

4. Labour Rate variance= (Actual rate- standard rate)*Actual hours worked

= (4.5-6)*38000

= (57000)

5. Labour Efficiency Variance= (Actual hours- standard hours)* Standard per hour

= (38000- 12000)*6

= 156000

Total Labour Variance= LRV+ LEV= (57000)+156000= 99000

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
Lime Corporation makes a product with the following standard costs: Input Standard Quantity or Hours Standard...
Lime Corporation makes a product with the following standard costs: Input Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 9.5 grams $6.00 per gram $57.00 Direct labor 0.5 hours $23.00 per hour $11.50 Variable overhead 0.5 hours $2.00 per hour $1.00 In November the company's budgeted production was 3,000 units but the actual production and sales was 2,800 units. The company used 27,670 grams of the direct material and 1,390 direct labor-hours to produce...
Q1: The standard costs and actual costs for direct materials for the manufacture of 2,600 actual...
Q1: The standard costs and actual costs for direct materials for the manufacture of 2,600 actual units of product are Standard Costs Direct materials (per completed unit) 1,040 kilograms @$8.61 Actual Costs Direct materials 2,600 kilograms @ $8.20 Round your final answer to the nearest dollar. The amount of direct materials price variance is $426 favorable $426 unfavorable $1,066 favorable $1,066 unfavorable Q2: The standard costs and actual costs for direct materials for the manufacture of 2,650 actual units of...
The following information is available for DEF Company pertaining to its budgeted and actual activities for...
The following information is available for DEF Company pertaining to its budgeted and actual activities for the period. Item Budgeted Activity (10,000 units) Actual Activity (12,000 units) Sale Price $10.00 per unit $9.75 per unit Variable Costs (per unit) Direct Materials $2.00 per unit $1.89 per unit Direct Labor $3.00 per unit $3.05 per unit Factory Supplies $0.25 per unit $0.25 per unit Utilities $0.35 per unit $0.33 per unit Selling Costs $0.50 per unit $0.45 per unit Fixed Costs...
The following information relates to the direct labor at Padmaja Manufacturing, Inc. for March: Actual Standard...
The following information relates to the direct labor at Padmaja Manufacturing, Inc. for March: Actual Standard Labor cost per hour $ 18.00 $ 17.50 Labor hours per unit produced 1.5 1.4 During March, Padmaja produced 2,100 units. What is Padmaja's labor efficiency variance for March? rev: 11_21_2017_QC_CS-108941 Multiple Choice $3,675 Unfavorable $1,575 Favorable $3,780 Unfavorable $2,625 Unfavorable
During June, Danby Company’s material purchases amounted to 6,200 pounds at a price of $7.50 per...
During June, Danby Company’s material purchases amounted to 6,200 pounds at a price of $7.50 per pound. Actual costs incurred in the production of 2,100 units were as follows: Direct labor: $ 121,695 ($18.30 per hour) Direct material: $ 33,000 ($7.50 per pound) The standards for one unit of Danby Company’s product are as follows: Direct Labor: Direct Material: Quantity, 3 hours per unit Quantity, 2 pounds per unit Rate, $18.20 per hour Price, $7.20 per pound Required: Compute the...
23-11 Hutto Corp. has set the following standard direct materials and direct labor costs per unit...
23-11 Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. # Lbs/Hrs per unit Cost per lb/Hr Standard Cost Materials 15 $4.00 $60 Direct Labor 3 $15.00 $45 During May the company incurred the following actual costs to produce 9,000 units. Total Lbs/Hrs Cost per lb/Hr Standard Cost Materials 138,000 $3.75 $517,500 Direct Labor 31,000 $15.10 $468,100 Compute the (1) direct materials price and quantity variances and (2) direct...
23-11 Hutto Corp. has set the following standard direct materials and direct labor costs per unit...
23-11 Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. # Lbs/Hrs per unit Cost per lb/Hr Standard Cost Materials 15 $4.00 $60 Direct Labor 3 $15.00 $45 During May the company incurred the following actual costs to produce 9,000 units. Total Lbs/Hrs Cost per lb/Hr Standard Cost Materials 138,000 $3.75 $517,500 Direct Labor 31,000 $15.10 $468,100 Compute the (1) direct materials price and quantity variances and (2) direct...
Smyer Corporation makes a product with the following standard costs: Smyer Corporation makes a product with...
Smyer Corporation makes a product with the following standard costs: Smyer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.9 pounds $14.00 per pound $96.60 Direct labor 2.8 hours $18.00 per hour $ 50.40 Variable overhead 2.8 hours $ 7.00 per hour $ 19.60 The company reported the following results concerning this product in July. Originally budgeted output 6,700 units Actual output 6,410 units Raw...
Bliny Corporation makes a product with the following standard costs for direct material and direct labor:...
Bliny Corporation makes a product with the following standard costs for direct material and direct labor:   Direct material: 1.70 meters at $5.60 per meter $ 9.52   Direct labor: .40 hours at $13.00 per hour $ 5.20 During the most recent month, 8,400 units were produced. The costs associated with the month’s production of this product were as follows:   Material purchased: 15,000 meters at $5.40 per meter $ 81,000   Material used in production: 14,380 meters –   Direct labor: 3,310 hours at...
During June, Danby Company’s material purchases amounted to 6,900 pounds at a price of $7.70 per...
During June, Danby Company’s material purchases amounted to 6,900 pounds at a price of $7.70 per pound. Actual costs incurred in the production of 1,500 units were as follows: Direct labor: $ 120,520 ($18.40 per hour) Direct material: $ 35,420 ($7.70 per pound) The standards for one unit of Danby Company’s product are as follows: Direct Labor: Direct Material: Quantity, 4 hours per unit Quantity, 3 pounds per unit Rate, $18.30 per hour Price, $7.40 per pound Required: Compute the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT