Standard DM price per pound (Lbs): $20Standard DM needed per unit: 2 LbsStandard DL rate: $15 per hourStandard DL hours per unit: 2 hours of Direct Labor per unit*The actual DM used for 11000 units of production is 24200 lbs which means:24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unitActual DL hours: 20000 hoursVariable Overhead Rate applied based on per DL hour: $10*Note: I am helping you here!AQ (AP-SP) = DM Price Variance(AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM)$442,000 - (24200 x $20) = DM Price Variance442,000 - 484,000 = DM Price Variance$42,000 Favorable DM Price Variance please answer the following questions:1. After preparing DM variance analysis, what is the Material Quantity variance? 2. Material price variance : 3. Total Material spending variance:4. Labor efficiency variance: 123414567891011 Fixed factory overhead12 Total manufacturing costs1315ACDEClick in the boxed area beneath the word "Budget," and use the associated pick list toselect alternative volume levels. The budget column values change (i.e., "flexible")based on volume. Examine the results and respond to the question at the bottom of thepage, which will turn green upon selecting the correct response.ReadyVariable ManufacturingDirect materialDirect laborVariable factory overheadTotal variable costsBProblemAccessibilitBudget Analysis for June, 20XX+Actual$ 442,000328,000215,000SA11,000 unitsSABudget$Which level of volume is consistent with the manager's claim? >>>>440,000330,000220,000985,000 $990,000255,000250,000$ 1,240,000 $ 1,240,000$SA$Variance(2,000)2,0005,0005,000(5,000)11,000 unitsF

Material Quantity variance It is the difference between the actual number of materials used in the…

Answered: Standard DM price per pound (Lbs): $20…

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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Standard DM price per pound (Lbs): $20

Standard DM needed per unit: 2 Lbs

Standard DL rate: $15 per hour

Standard DL hours per unit: 2 hours of Direct Labor per unit

*The actual DM used for 11000 units of production is 24200 lbs which means:

24200 lbs / 11000 actual units produced = 2.2 lbs actual quantity of DM used per unit

Actual DL hours: 20000 hours

Variable Overhead Rate applied based on per DL hour: $10

*Note: I am helping you here!

AQ (AP-SP) = DM Price Variance
(AQ x AP) - (AQ x SP) = -42000 Favorable (less spending for DM)
$442,000 - (24200 x $20) = DM Price Variance
442,000 - 484,000 = DM Price Variance
$42,000 Favorable DM Price Variance

please answer the following questions:

1. After preparing DM variance analysis, what is the Material Quantity variance?
2. Material price variance :
3. Total Material spending variance:
4. Labor efficiency variance:

1
2
3
4
14
5
6
7
8
9
10
11 Fixed factory overhead
12 Total manufacturing costs
13
15
A
C
D
E
Click in the boxed area beneath the word "Budget," and use the associated pick list to
select alternative volume levels. The budget column values change (i.e., "flexible")
based on volume. Examine the results and respond to the question at the bottom of the
page, which will turn green upon selecting the correct response.
Ready
Variable Manufacturing
Direct material
Direct labor
Variable factory overhead
Total variable costs
B
Problem
Accessibilit
Budget Analysis for June, 20XX
+
Actual
$ 442,000
328,000
215,000
SA
11,000 units
SA
Budget
$
Which level of volume is consistent with the manager's claim? >>>>
440,000
330,000
220,000
985,000 $
990,000
255,000
250,000
$ 1,240,000 $ 1,240,000
$
SA
$
Variance
(2,000)
2,000
5,000
5,000
(5,000)
11,000 units
F

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