Material price variance The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance. Material quantity variance The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance. To compute: Favorable or unfavorable material price and quantity variance.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Convert the accompanying database to an Excel table to find: a.The total cost of all orders. b. The total quantity of airframe fasteners purchased. c. The total cost of all orders placed with Manley Valve.

I need help figuring out the Materials piece on the second half of this excel sheet.

Please show your computations through excel. Using FIFO, compute for the equivalent unit for finishing department.

Answer 2

Question

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Answer 6

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

Answer 7

Chapter 9, Problem 2AE

1

To determine

Material price variance

The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.

Material quantity variance

The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.

To compute:Favorable or unfavorable material price and quantity variance.

Answer 8

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

Answer 9

2

To determine

Labor rate variance

The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.

Labor efficiency variance

The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.

To compute: Favorable or unfavorable labor rate and efficiency variances.

Answer 10

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Answer 11

3

To determine

Variable overhead rate variance

The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.

Variable overhead efficiency variance

The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.

To compute: Favorable or unfavorable variable overhead rate and efficiency variances.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 9.A - Fixed Overhead Variances Primara Corporation has a...Ch. 9.A - Predetermined Overhead Rate: Overhead Variances...Ch. 9.A - Applying Overhead in a Standard Costing System...Ch. 9.A - Prob. 4E Ch. 9.A - Using Fixed Overhead Variances The standard cost...Ch. 9.A - Prob. 6E Ch. 9.A - Relations Among Fixed Overhead Variances Selected...Ch. 9.A - Applying Overhead; Overhead Variances Lane Company...Ch. 9.A - Applying Overhead; Overhead Variances Chilczuk....Ch. 9.A - Comprehensive Standard Cost Variances "Wonderful!...

Solution Summary: The author calculates material price and quantity variances using the standard cost variance analysis for direct labor.

Want to see the full answer?

Chapter 9 Solutions