Homework SourseRevise the data in your worksheet to reflect the results for
Revise the data in your worksheet to reflect the results for the subsequent period as shown below:
What is the materials quantity variance? (Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (i.e., zero variance).)
What is the materials price variance? (Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (i.e., zero variance).)
What is labor efficiency variance? (Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (i.e., zero variance).)
What is labor rate variance? (Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (i.e., zero variance).)
What is variable overhead efficiency variance? (Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (i.e., zero variance).)
What is variable overhead rate variance? (Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (i.e., zero variance).)
| A | B | C | D | E | F | |
| 1 | Chapter 8: Applying Excel | |||||
| 2 | ||||||
| 3 | Data | |||||
| 4 | Exhibit 8-8: Standard Cost Card | |||||
| 5 | Inputs | Standard Quantity | Standard Price | |||
| 6 | Direct materials | 3.0 | pounds | $4.00 | ||
| 7 | Direct labor | 0.50 | hours | $22.00 | per hour | |
| 8 | Variable manufacturing overhead | 0.50 | hours | $6.00 | per hour | |
| 9 | ||||||
| 10 | Actual results: | |||||
| 11 | Actual output | 2,190 | units | |||
| 12 | Actual variable manufacturing overhead cost | $7,906 | ||||
| 13 | Actual Quantity | Actual price | ||||
| 14 | Actual direct materials cost | 6,530 | pounds | $4.3 | pounds | |
| 15 | Actual direct labor cost | 1,340 | hours | $22.1 | per hour | |
| 16 |
Solution
For your information;
SQ = Standard Quantity
AQ = Actual quantity
SP = Standard price
AP = Actual price
AH = Actula hours
SH = Standard Hours
SR = Standard rate
AR = Actual rate
1. Material Quantity variance = SQ x SP-AQ x SP
= 3 x2190 x 4 - 6530 x 4
= 26280-26120 = 160 (F)
2. Material price variance = AQ x SP- AQx AP
= 6530 x 4 - 6530 x 4.3
= -1959 (U)
3. Labour efficiency variance = SH X SR - AH x SR
= 2190 x .5 x 22 - 1340 x 22
= 24090 - 29480 = 5390 (U)
4. Labour rate variance =SR x AH - AR x AH
= 22 x 1340 - 22.1 x 1340
= 29480-29614 = 134 (U)
5.variable overhead efficiency variance = (Standard hours for actual product - Actual hours )x Standard overhead rate per hour
= (2190 x .5 -1340 ) x 6
= 1470 (U)
6. variable overhead rate variance = Budgeted variable overhead for actual hours - Actual variable overhead
= 2190 x .5 x 6 -7906
= 1336 (U)
