**Acme Inc. Variance Analysis**Acme Inc. has provided the following information for variance analysis:- **Actual price paid for material:** $1.00- **Standard price for material:** $0.90- **Actual quantity purchased and used in production:** 100 units- **Standard quantity for units produced:** 90 units- **Actual labor rate per hour:** $15- **Standard labor rate per hour:** $16- **Actual hours:** 200 hours- **Standard hours for units produced:** 220 hours**Tasks:**A. Compute the material price and quantity variances.B. Compute the labor rate and labor efficiency variances.C. Describe the possible causes for this combination of favorable and unfavorable variances.**Analysis Guidelines:**- For material price variance, assess the difference between the actual and standard prices per unit and multiply by the actual quantity.- For material quantity variance, analyze the difference between actual and standard quantities used, multiplied by the standard price.- For labor rate variance, compare the actual and standard labor rates per hour, multiplied by actual hours worked.- For labor efficiency variance, compare the actual and standard hours worked, multiplied by the standard labor rate.- Consider possible factors affecting these variances, like changes in supplier prices or production efficiency.

Name: **Acme Inc. Variance Analysis**Acme Inc. has provided the following i
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Description: **Acme Inc. Variance Analysis**Acme Inc. has provided the following information for variance analysis:- **Actual price paid for material:** $1.00- **Standard price for material:** $0.90- **Actual quantity purchased and used in production:** 100 unit

Variances A variance is the difference between the actual cost incurred and the budgeted or…

Business

Accounting

2. Acme Inc. has the following information available: Actual price paid for material Standard price for material Actual quantity purchased and used in production Standard quantity for units produced Actual labor rate per hour Standard labor rate per hour Actual hours Standard hours for units produced $1.00 $0.90 A. B. C. D. E. unfavorable variances. Compute the material price and quantity, and the labor rate and efficiency variances. Describe the possible causes for this combination of favorable and 100 90 15 $ $ 16 200 220

2. Acme Inc. has the following information available: Actual price paid for material Standard price for material Actual quantity purchased and used in production Standard quantity for units produced Actual labor rate per hour Standard labor rate per hour Actual hours Standard hours for units produced $1.00 $0.90 A. B. C. D. E. unfavorable variances. Compute the material price and quantity, and the labor rate and efficiency variances. Describe the possible causes for this combination of favorable and 100 90 15 $ $ 16 200 220

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $1.10 Actual quantity purchased and used in production 100 Standard quantity for units produced 130 Actual labor rate per hour $15 Standard labor rate per hour $17 Actual hours 200 Standard hours for units produced 230 A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance Material quantity variance Labor rate variance Labor efficiency variance
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Acme Inc. has the following information available: Actual price paid for material $0.900 Standard price for material $0.625 Actual quantity purchased and used in production 90 Standard quantity for units produced 60 Actual labor rate per hour $16 Standard labor rate per hour $14 Actual hours 210 Standard hours for units produced 220 Compute the material price and quantity, and the labor rate and efficiency variances. Round your answers to two decimal places. Enter all amounts as positive numbers. Material price variance $fill in the blank 1 Material quantity variance $fill in the blank 3 Labor rate variance $fill in the blank 5 Labor efficiency variance $fill in the blank 7
Assume (1) the quantity of materials purchased equals the quantity used in production, (2) the materials price variance is $400 unfavorable, and (3) the materials quantity variance is $200 favorable. Given these assumptions, which of the following statements is true? Multiple Choice The materials spending variance must be $200 favorable. The materials spending variance must be $600 favorable. The materials spending variance must be $200 unfavorable. The materials spending variance must be $600 unfavorable.
A company product has used more material to produce than the standard amount but takes fewer labor hours. Which of the following statements is correct? A.The materials variance is favorable and the labor variance is unfavorable. B.Both the materials and labor variances are unfavorable. C.The materials variance is unfavorable and the labor variance is favorable. D.Both the materials and labor variances are favorable.
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Subject :- Accounting
5. Using the data below, find the graphical solution for variance on quantity first and material cost first, then find the total variance. Product Element Estimate Material cost per unit $30.00 Number of units 150 Actual $40.00 250
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