Calculate Variances The following summary data relate to the operations of Randolph Company for July, during which 4,500 finished units were produced: Standard Units Costs Total Actual Costs Direct material Standard (0.6 lb. @ $13.00/lb.) $7.80 Actual (3,000 lb. @ $13.30/lb.) $39,900 Direct labor Standard (0.8 hr. @ $16.80/hr.) $13.44 Actual (3,800 hrs. @ $16.40/hr.) 62,320 Variable overhead Standard (0.8 hr. @ $11.50/hr.) $9.20 Actual - 46,100 Total $30.44 $148,320 Determine the following 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 Answer Materials efficiency Answer Answer Labor Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Labor rate Answer Answer Labor efficiency Answer Answer Variable Overhead Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Variable overhead spending Answer Answer Variable overhead efficiency Answer Answer
Calculate Variances The following summary data relate to the operations of Randolph Company for July, during which 4,500 finished units were produced: Standard Units Costs Total Actual Costs Direct material Standard (0.6 lb. @ $13.00/lb.) $7.80 Actual (3,000 lb. @ $13.30/lb.) $39,900 Direct labor Standard (0.8 hr. @ $16.80/hr.) $13.44 Actual (3,800 hrs. @ $16.40/hr.) 62,320 Variable overhead Standard (0.8 hr. @ $11.50/hr.) $9.20 Actual - 46,100 Total $30.44 $148,320 Determine the following 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 Answer Materials efficiency Answer Answer Labor Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Labor rate Answer Answer Labor efficiency Answer Answer Variable Overhead Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Variable overhead spending Answer Answer Variable overhead efficiency Answer Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
Calculate Variances
The following summary data relate to the operations of Randolph Company for July, during which 4,500 finished units were produced:
| Total Actual Costs | ||||||
|---|---|---|---|---|---|---|
| Direct material | ||||||
| Standard (0.6 lb. @ $13.00/lb.) | $7.80 | |||||
| Actual (3,000 lb. @ $13.30/lb.) | $39,900 | |||||
| Direct labor | ||||||
| Standard (0.8 hr. @ $16.80/hr.) | $13.44 | |||||
| Actual (3,800 hrs. @ $16.40/hr.) | 62,320 | |||||
| Variable |
||||||
| Standard (0.8 hr. @ $11.50/hr.) | $9.20 | |||||
| Actual | - | 46,100 | ||||
| Total | $30.44 | $148,320 |
Determine the following 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 | Answer |
| Materials efficiency | Answer | Answer |
| Labor Variances | ||
|---|---|---|
| Actual cost: | Answer | |
| Split cost: | Answer | |
| Standard cost: | Answer | |
| Labor rate | Answer | Answer |
| Labor efficiency | Answer | Answer |
| Variable Overhead Variances | ||
|---|---|---|
| Actual cost: | Answer | |
| Split cost: | Answer | |
| Standard cost: | Answer | |
| Variable overhead spending | Answer | Answer |
| Variable overhead efficiency | Answer | Answer |
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