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Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct laber, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Direct materials Direct labor Standard Costs Factory overhead 222,000 lbs at $5.90 per Ib 18,500 hrs at $16.80 per he Rates per direct labor hr, based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $4.50 Fixed cost, $7.10 Each unit requires 0.25 hour of direct labor Required: a. Determine the direct materials price variance direct materials quantity variance, and total direct number using a minus sign and an unfavorable variance as a positive number Direct Materials Price Verience Direct Materials Quentity Variance U Total Direct Materials Cost Variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance Enter a favorable minus sign and an unfavorable variance as a positive number Actual Costs 219,800 lbs at $5.80 per lb. 18,930 hrs at $17.20 per he Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance 182,420 variable cost $137,101 fixed cost ance Enter a favorable varia as a negative tive number using a Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance c. Determine the variable factory overhead controllable vanance, fixed factory overhead volume variance, and total factory overhead cest variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number U

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct laber, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Direct materials Direct labor Standard Costs Factory overhead 222,000 lbs at $5.90 per Ib 18,500 hrs at $16.80 per he Rates per direct labor hr, based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $4.50 Fixed cost, $7.10 Each unit requires 0.25 hour of direct labor Required: a. Determine the direct materials price variance direct materials quantity variance, and total direct number using a minus sign and an unfavorable variance as a positive number Direct Materials Price Verience Direct Materials Quentity Variance U Total Direct Materials Cost Variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance Enter a favorable minus sign and an unfavorable variance as a positive number Actual Costs 219,800 lbs at $5.80 per lb. 18,930 hrs at $17.20 per he Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance 182,420 variable cost $137,101 fixed cost ance Enter a favorable varia as a negative tive number using a Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance c. Determine the variable factory overhead controllable vanance, fixed factory overhead volume variance, and total factory overhead cest variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number U

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...
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Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Direct materials Direct labor Factory overhead Standard Costs 222,000 lbs at $5.90 per lb. 18,500 hrs, at $16.80 per hr Rates per direct labor hr, based on 100% of normal capacity of 19,310 direct labor hrs. Variable cost, $4.50 Fixed cost, $7.10 Each unit requires 0.25 hour of direct labor Required: a. Determine the direct materials price variance irect materials quantity variance, and total direct materials cost variance Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Direct Labor Rate Variance Direct Labor Time Variance Actual Costs 219,800 lbs at $5.80 per lb. 18,930 hrs at $17.20 per hr Variable factory overheed controllable variance Fixed factory overhead volume variance Total factory overhead cost variance 182,420 variable cost $137,101 fixed cost Total Direct Labor Cost Variance c. Determine the variable factory overhead controllable vanance, fixed factory overhead volume variance, and total factory overhead cest variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number,
Transcribed Image Text:Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows: Direct materials Direct labor Factory overhead Standard Costs 222,000 lbs at $5.90 per lb. 18,500 hrs, at $16.80 per hr Rates per direct labor hr, based on 100% of normal capacity of 19,310 direct labor hrs. Variable cost, $4.50 Fixed cost, $7.10 Each unit requires 0.25 hour of direct labor Required: a. Determine the direct materials price variance irect materials quantity variance, and total direct materials cost variance Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Direct Materials Price Variance Direct Materials Quantity Variance Total Direct Materials Cost Variance b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Direct Labor Rate Variance Direct Labor Time Variance Actual Costs 219,800 lbs at $5.80 per lb. 18,930 hrs at $17.20 per hr Variable factory overheed controllable variance Fixed factory overhead volume variance Total factory overhead cost variance 182,420 variable cost $137,101 fixed cost Total Direct Labor Cost Variance c. Determine the variable factory overhead controllable vanance, fixed factory overhead volume variance, and total factory overhead cest variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number,
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