Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 9, Problem 23E
a.
To determine
Compute the revenue price variance.
b.
To determine
Compute the revenue volume variance.
c.
To determine
Compute the total revenue variance.
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2. For the month of January, compute the following variances.
Compute the following variances for the month of May.a. Direct-material price variance b. Direct-material quantity variance c. Direct-material purchase price variance d. Direct-labor rate variance e. Direct-labor e ciency variance
Fortes Incorporated has provided the following data concerning one of the products in its standard cost system. Variable
manufacturing overhead is applied to products on the basis of direct labor-hours.
Standard Quantity or
Hours per Unit of Output
8.5 ounces
0.6 hours
0.6 hours.
Inputs
Direct materials
Direct labor
Variable manufacturing overhead
The company has reported the following actual results for the product for April:
6,100 units
55,050 ounces
Actual output
Raw materials purchased
Actual cost of raw materials purchased
Raw materials used in production
Actual direct labor-hours
Actual direct labor cost
Actual variable overhead cost
$ 303,010
51,860 ounces
3,360 hours
Standard Price or Rate
$6.60 per ounce
$24.80 per hour
$ 4.90 per hour
$ 86,810
$ 15,717
Required:
a. Compute the materials price variance for April.
b. Compute the materials quantity variance for April.
c. Compute the labor rate variance for April.
d. Compute the labor efficiency variance for April.
e. Compute the…
Chapter 9 Solutions
Managerial Accounting
Ch. 9 - What are the basic objectives in the use of...Ch. 9 - What is meant by reporting by the principle of...Ch. 9 - What are the two variances between the actual cost...Ch. 9 - The materials cost variance report for Nickols...Ch. 9 - A. What are the two variances between the actual...Ch. 9 - Prob. 6DQCh. 9 - Would the use of standards be appropriate in a...Ch. 9 - A. Describe the two variances between the actual...Ch. 9 - At the end of the period, the factory overhead...Ch. 9 - If variances are recorded in the accounts at the...
Ch. 9 - Direct materials variances Bellingham Company...Ch. 9 - Direct labor variances Bellingham Company produces...Ch. 9 - Factory overhead controllable variance Bellingham...Ch. 9 - Factory overhead volume variance Bellingham...Ch. 9 - Standard cost journal entries Bellingham Company...Ch. 9 - Prob. 6BECh. 9 - Crazy Delicious Inc. produces chocolate bars. The...Ch. 9 - Prob. 2ECh. 9 - Salisbury Bottle Company manufactures plastic...Ch. 9 - The following data relate to the direct materials...Ch. 9 - De Soto Inc. produces tablet computers. The...Ch. 9 - Standard direct materials cost per unit from...Ch. 9 - H.J. Heinz Company uses standards to control its...Ch. 9 - Direct labor variances The following data relate...Ch. 9 - Glacier Bicycle Company manufactures commuter...Ch. 9 - Ada Clothes Company produced 40,000 units during...Ch. 9 - Prob. 11ECh. 9 - Direct materials and direct labor variances At the...Ch. 9 - Flexible overhead budget Leno Manufacturing...Ch. 9 - Prob. 14ECh. 9 - Factory overhead cost variances The following data...Ch. 9 - Thomas Textiles Corporation began November with a...Ch. 9 - Prob. 17ECh. 9 - Factory overhead cost variance report Tannin...Ch. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Income statement indicating standard cost...Ch. 9 - Prob. 22ECh. 9 - Prob. 23ECh. 9 - Rosenberry Company computed the following revenue...Ch. 9 - Lowell Manufacturing Inc. has a normal selling...Ch. 9 - Shasta Fixture Company manufactures faucets in a...Ch. 9 - Flexible budgeting and variance analysis I Love My...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Tiger...Ch. 9 - CodeHead Software Inc. does software development....Ch. 9 - Direct materials and direct labor variance...Ch. 9 - Flexible budgeting and variance analysis Im Really...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Feeling...Ch. 9 - Prob. 5PBCh. 9 - Prob. 1COMPCh. 9 - Advent Software uses standards to manage the cost...Ch. 9 - Prob. 2MADCh. 9 - Prob. 3MADCh. 9 - Prob. 4MADCh. 9 - Ethics in action Dash Riprock is a cost analyst...Ch. 9 - Variance interpretation Vanadium Audio Inc. is a...Ch. 9 - MinnOil performs oil changes and other minor...Ch. 9 - Marten Company has a cost-benefit policy to...Ch. 9 - Prob. 3CMACh. 9 - JoyT Company manufactures Maxi Dolls for sale in...
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- 1. Summarize the variances that you computes in (1) above by showing the net overall favorable or unfavorable variances for the month. What impact did this figure have on the company's income statement? Show computations 2.Pick out the two most significant variances that you computed in (1) above. Explain tMs. Dunn possible causes of these variances.arrow_forwardFor the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U): Q. Direct materials efficiency variance ?arrow_forwardUsing the two-way analysis of overhead variances, what is the controllable variance for January?arrow_forward
- 2. present the analysis of the following variances for October: a.Direct materials price quantity variances b. Direct labor rate and efficiency variances. c. Variable manufacturing overhead spending and efficiency variances. 3. Indicate whether the variance is favorable or unfavorable 4. pick out two most significant variances that you have computed. Explain to MR. Santiago possible causes of these variances.arrow_forwardFor the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U) Q.Production-volume variance.arrow_forward1. Compute the materials price and quantity variances for August. 2. Compute the labor rate and efficiency variances for August. 3. Compute the variable overhead rate and efficiency variances for August.arrow_forward
- Required:(i) Prepare a standard costing profit statement, and a profit statement based on actual figures for the month of May. (ii) Prepare a statement of the variances which reconciles the actual with the standard profit or loss figure.arrow_forwardRequired: Compute the individual product and total sales volume variances for August. Compute the individual product and total sales quantity variances for August. Compute the individual and total sales mix variances for August.arrow_forwardb. Calculate the profit variance c. Calculate the total revenue variance. d) Calculate the revenue volume variance. e) Calculate the revenue price variance. f) Calculate the total cost variance.arrow_forward
- For the month of April, compute the variances, indicating whether it is favorable (F) or unfavorable (U): Q. Direct materials price variance (based on purchases)?arrow_forwardQ.Prepare a static-budget-based variance analysis of the September performance.arrow_forwardCalculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.E., zero variance) Input all amounts as positive values.)arrow_forward
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY