Schematize pertormance analysis and comment onvariances.Following is the data of a manufacturing concern. Fromthe figures given below, calculate:() Materials Cost Variance(W) Material Price Varlance(H) Material Usage VarianceProduct XDuring a particular period 160 tons of output wasundertaken. The standard price per unit of materials is$20. The materials required for actual production were4,000 units. An amount of $16,000 was spent onpurchasing the materlals. The standard quantity ofmaterials requlred for producing one fon of output is 120units.Product YThe standard quantity of materlals required for producingone ton of output is 240 unils. The standard price per unitof materials is $24. During a porticular period d40 fons ofproduction were 24.000 units. An amount of $48.000 wasspent on purchasing the materialsoutput was undertaken. The materials required for octual

Name: Schematize pertormance analysis and comment onvariances.Following is
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Description: Schematize pertormance analysis and comment onvariances.Following is the data of a manufacturing concern. Fromthe figures given below, calculate:() Materials Cost Variance(W) Material Price Varlance(H) Material Usage VarianceProduct XDuring a partic

Material cost variance refers to the variance which evaluates the difference between the estimated…

Business

Accounting

ing is the data of a manulacuring con the figures given below, calculate: ) Materials Cost Variance (W) Material Price Variance (W) Material Usage Variance Product X During a particular period 140 fons of output w undertaken. The standard price per unit of ma $20. The materials required for actual producti 4,000 units. An amount of $16.000 was spent on purchasing the materials. The standard quanti materlals required for producing one fon of out units.

ing is the data of a manulacuring con the figures given below, calculate: ) Materials Cost Variance (W) Material Price Variance (W) Material Usage Variance Product X During a particular period 140 fons of output w undertaken. The standard price per unit of ma $20. The materials required for actual producti 4,000 units. An amount of $16.000 was spent on purchasing the materials. The standard quanti materlals required for producing one fon of out units.

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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Oriole Company's actual results reveal that it was profitable in the sale of its star product: a high-end spot-cleaning vacuum for upholstery. But it was not nearly as profitable as management had hoped. Oriole's actual income statement and master budget income statement are as follows. In order to keep the focus on product costs, SG&A costs were omitted. Units sold Revenues Variable costs DM DL Variable-MOH Contribution margin Fixed-MOH Operating income DM DL Input Variable-MOH Actual Results Fixed-MOH 10,000 $1,670,000 560,500 216,000 Here are the company's standard cost cards for each product cost. 130,500 763,000 306,000 $457,000 Quantity Standards 3.0 yards 1.6 hours 1.6 hours. Flexible Budget 1.6 hours Price Standards $18.00 per yard $11.00 per hour $7.50 per hour $15.50 per hour Master Budget 12,000 $2,076,000 648,000 211,200 144,000 1,072,800 297,600 $775,200 Standard Cost per Unit $54.00 $17.60 $12.00 $24.80
The following data relate to the direct materials cost for the production of automobile tires: Actual: 56,700 lbs. at $2.05 per lb.Standard: 55,600 lbs. at $2.10 per lb. a. Determine the direct materials price variance, direct 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. Line Item Description Amount Variance Direct Materials Price Variance $fill in the blank 1 Direct Materials Quantity Variance $fill in the blank 3 Total Direct Materials Cost Variance $fill in the blank 5
The variable overhead expenditure and efficiency variances are: PQR has prepared the following standard cost information for one unit of product X: Direct materials 2 kg @ $13/kg Direct labour 3.3 hours @ $12/hour Variable overheads 3.3 hours @ $2.50 Actual results for the period were recorded as follows: 12,000 units Production Materials - 26,400 kg Labour - 40,200 hours Variable overheads $336,600 $506,520 $107,250 * $26.00 $39.60 $8.25
If the materials price variance is $3,600 F and the materials quantity and labor variances are each $2,700 U, what is the total materials variance?
The following data relate to labor cost for production of 5,100 cellular telephones: Actual: 3,430 hrs. at $12.70 Standard: 3,380 hrs. at $13.00 a. 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. 1,266 X 910 X -368 X Rate variance Favorable Unfavorable ✓ Time variance Total direct labor cost variance Favorable •✓ b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower may have resulted in less ✔efficient performance. Thus, the actual time required was more ✓ ✔labor rate than planned. The lower level of experience or training ✔than standard.
Jordan Manufacturing Company established the following standard price and cost data. Sales price $ 8.50 per unit Variable manufacturing cost $ 3.60 per unit Fixed manufacturing cost $ 2,300 total Fixed selling and administrative cost $ 700 total Jordan planned to produce and sell 2,500 units. Actual production and sales amounted to 2,700 units. Required Determine the sales and variable cost volume variances. Classify the variances as favorable (F) or unfavorable (U). Determine the amount of fixed cost that will appear in the flexible budget. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity.
The following data relate to labor cost for production of 3,300 cellular telephones: Actual: 2,210 hrs. at $14.20Standard: 2,180 hrs. at $14.40 a. 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. Line Item Description Amount Variance Rate variance $fill in the blank 1 Time variance $fill in the blank 3 Total direct labor cost variance $fill in the blank 5
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
Assume the following information (the quantity of materials purchased = the quantity used): Actual total cost of direct materials $ 65,560 Direct materials price variance $ 5,960 U Standard quantity of materials allowed per unit 3 pounds Standard price per pound of material $ 4.00 Standard rate per direct labor hour $ 5.00 Actual total direct labor hours 6,500 Direct labor efficiency variance $ 3,500 F Standard number of direct labor hours allowed per unit 2 hours Direct labor spending variance $ 400 U What is the actual number of units produced during the period?
The following data relate to the direct materials cost for the production of 2,300 automobile tires: Actual: 52,300 lbs. at $1.8 per lb. Standard: 50,700 lbs. at $1.85 per lb. a. Determine the direct materials price variance, direct 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. The direct materials price variance should normally be reported to the _____ . When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the _____ . When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the _____ .
The actual materials price (AP) was £4.50, the actual quantity (AQ) of material was 5,500 units, and the materials price variance was £2,270 unfavourable. The standard materials price (SP) was?
Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows: Actual costs 1,540 lbs. @ $9.15 Standard costs 1,600 lbs. @ $9.00 Determine the (a) quantity variance, (b) price variance, and (c) total direct materials cost variance. For each variance, indicate if the variance is favorable or unfavorable. (a) (b) (c)