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Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Cost Total Actual Costs Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.) Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.) Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual Total $8.80 22.00 6.00 $36.80 $76,000 209,050 54,900 $333,950 REQUIRED Determine the following variances and indicate whether each is favorable or unfavorable: a. Materials price and efficiency variances b. Labor rate and efficiency variances c. Variable overhead spending and efficiency variances

Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Cost Total Actual Costs Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.) Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.) Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual Total $8.80 22.00 6.00 $36.80 $76,000 209,050 54,900 $333,950 REQUIRED Determine the following variances and indicate whether each is favorable or unfavorable: a. Materials price and efficiency variances b. Labor rate and efficiency variances c. Variable overhead spending and efficiency variances

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...
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P11-1A Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Cost Total Actual Costs Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.) Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.) Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual Total $8.80 22.00 6.00 $36.80 $76,000 209,050 54,900 $333,950 REQUIRED Determine the following variances and indicate whether each is favorable or unfavorable: a. Materials price and efficiency variances b. Labor rate and efficiency variances c. Variable overhead spending and efficiency variances
Transcribed Image Text:P11-1A Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Cost Total Actual Costs Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.) Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.) Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual Total $8.80 22.00 6.00 $36.80 $76,000 209,050 54,900 $333,950 REQUIRED Determine the following variances and indicate whether each is favorable or unfavorable: a. Materials price and efficiency variances b. Labor rate and efficiency variances c. Variable overhead spending and efficiency variances
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