Standard Cost Profile Lab Treatment SU 12 Expected Treatment

Standard Cost Profile

Lab Treatment SU #12

Expected Treatments = 1,000

                              Quantity        Quantity       Unit        Variable     Average          Average

Resource         Variable            Fixed        Cost            Cost      Fixed Cost        Total Cost

Labor                   0.80                0.80        $ 16.00     $ 12.80        $ 12.80              $ 25.60

Supplies               7.00                0                  1.10          7.70                  0                  7.70

                                                                                   $ 20.50      $      12.80               33.30

Actual Month Cost

Lab Treatment SU #12

Actual Treatments = 1,100

                              Quantity            Unit             Total

Resource            Used               Cost            Cost    

Labor                   1,600         $ 17.00         $ 27,200

Supplies               7,500              1.00              7,500

                                                                    $ 34,700

Calculate the following variances:

Volume Variance

Solution

volume variance=(actual quantity consumed - budgeted expected quatity)* standard price unit.

for labour

(1600-1.6)16=25574.4

for supplies

(7500-7)1.1=8242.3

total volume variance=33816.7$

this is adverse because resource cosumption is higher ompared to budgeted.