Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual cost: Split cost: Direct material Direct labor 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 Standard cost: Actual Costs Labor Variances Actual cost: Split cost: Standard cost: c. Labor rate Answer 4,200 Answer a. Materials price b. Materials efficiency Answer AnswerFU Answer 5,700 hrs. @ Answer Standard Costs lbs. @ Answer AnswerFU Answer Answer Answer AnswerFU $4.90 $9.30 d. Labor efficieny Answer AnswerFU 4,000 lbs. @ $5.20 6,000 hrs. @ $9.50
Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a product: Actual cost: Split cost: Direct material Direct labor 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 Standard cost: Actual Costs Labor Variances Actual cost: Split cost: Standard cost: c. Labor rate Answer 4,200 Answer a. Materials price b. Materials efficiency Answer AnswerFU Answer 5,700 hrs. @ Answer Standard Costs lbs. @ Answer AnswerFU Answer Answer Answer AnswerFU $4.90 $9.30 d. Labor efficieny Answer AnswerFU 4,000 lbs. @ $5.20 6,000 hrs. @ $9.50
Chapter1: Financial Statements And Business Decisions
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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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Transcribed Image Text:Material and Labor Variances
The following actual and standard cost data for direct material and direct labor relate to the production of 2,000 units of a
product:
Direct material
Direct labor
Actual cost:
Split cost:
Standard cost:
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 Costs
Labor Variances
Actual cost:
Split cost:
Standard cost:
c. Labor rate
Answer
4,200
5,700
Answer
a. Materials price
b. Materials efficiency Answer AnswerFU
Answer
Answer AnswerFU
Answer
Standard Costs
lbs. @
hrs. @
Answer
Answer
Answer AnswerFU
$4.90
$9.30
d. Labor efficieny Answer AnswerFU
4,000 lbs. @ $5.20
6,000 hrs. @
$9.50
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