Surf Inc. has the following standards. Standard Quantity for unit of output3pounds Standard Cost per pound$5.25 Standard Direct Labor hours per unit20 Standard Dir Labor Rate$17.65 Other Data for the month Planned Production 350.00units Actual Production 325.00units Actual Material Cost 5,200.00 Actual Material Pounds 1,000.00 Actual Labor Cost 114,570.00 Actual Labor Rate 17.10 Compute the following variances and indicate if the are favorable or unfavorable Variance Is the variance Favorable or Unfavorable Material Quantity Variance Material Price Variance Material Spending Variance Labor Efficiency Variance Labor Rate Variance Labor Spending Variance Show your work for the above answers Description Actual Cost Standard Cost Material Labor

Name: Surf Inc. has the following standards. Standard Quantity for uni
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Description: Surf Inc. has the following standards. Standard Quantity for unit of output3pounds Standard Cost per pound$5.25 Standard Direct Labor hours per unit20 Standard Dir Labor Rate$17.65 Other Data for the month Planned Production

Standard price (SP) 5.25 Standard quantity (SQ) [ 3 x 325] 975 Actual Price (AP) [5200 / 1000]…

Answered: Material Price Variance…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 4P: Calculation of materials and labor variances Fritz Corp. manufactures and sells a single product....

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Surf Inc. has the following standards.

Standard Quantity for unit of output	3	pounds
Standard Cost per pound	$5.25
Standard Direct Labor hours per unit	20
Standard Dir Labor Rate	$17.65

Other Data for the month
Planned Production	350.00	units
Actual Production	325.00	units
Actual Material Cost	5,200.00
Actual Material Pounds	1,000.00
Actual Labor Cost	114,570.00
Actual Labor Rate	17.10

Compute the following variances and indicate if the are favorable or unfavorable

	Variance	Is the variance Favorable or Unfavorable
Material Quantity Variance
Material Price Variance
Material Spending Variance
Labor Efficiency Variance
Labor Rate Variance
Labor Spending Variance


Show your work for the above answers

Description	Actual Cost		Standard Cost
Material




Labor

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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