The following information relates to the current period: Standard costs (per unit of output) Direct materials, 7 gallons @ $4.00 per gallon. Direct labor, 5.00 hours @ $34.00 per hour Factory overhead Variable (30% of direct labor cost) Total standard cost per unit Actual costs and activities for the month follow: $ 28 170 51 $249 Materials used Output 15,520 gallons at $1.88 per gallon 2,160 units Actual labor costs Actual variable overhead 6,000 hours at $40.80 per hour $62,500 Required: Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct materials: Price variance Efficiency variance Direct materials cost variance Direct labor: Price variance Efficiency variance Direct labor cost variance Variable overhead: Price variance Efficiency variance

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following information relates to the current period:
Standard costs (per unit of output)
Direct materials, 7 gallons @ $4.00 per gallon.
Direct labor, 5.00 hours @ $34.00 per hour
Factory overhead
Variable (30% of direct labor cost)
Total standard cost per unit
Actual costs and activities for the month follow:
$ 28
170
51
$249
Materials used
Output
15,520 gallons at $1.88 per gallon
2,160 units
Actual labor costs
Actual variable overhead
6,000 hours at $40.80 per hour
$62,500
Required:
Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. Do not round intermediate
calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not
select either option.)
Direct materials:
Price variance
Efficiency variance
Direct materials cost variance
Direct labor:
Price variance
Efficiency variance
Direct labor cost variance
Variable overhead:
Price variance
Efficiency variance
Transcribed Image Text:The following information relates to the current period: Standard costs (per unit of output) Direct materials, 7 gallons @ $4.00 per gallon. Direct labor, 5.00 hours @ $34.00 per hour Factory overhead Variable (30% of direct labor cost) Total standard cost per unit Actual costs and activities for the month follow: $ 28 170 51 $249 Materials used Output 15,520 gallons at $1.88 per gallon 2,160 units Actual labor costs Actual variable overhead 6,000 hours at $40.80 per hour $62,500 Required: Prepare a cost variance analysis for the variable costs. (Enter your final answers as a whole number. Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Direct materials: Price variance Efficiency variance Direct materials cost variance Direct labor: Price variance Efficiency variance Direct labor cost variance Variable overhead: Price variance Efficiency variance
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