Please help me with the following I have A already done and

Please help me with the following..

I have \"A\" already done, and correct if you could help me with the others.

please explain the steps to get the answer so I can understand how to do this.

Solution

Answer to A) is correct

B) 1) Material Price Variance :

Material Price Variance = (Standard Price - Actual Price) * Actual Quantity

Actual Quantity = Actual Volume * Actual Quantity of material per unit

Now, Material Price Variance = (1.90-2.40) * (3600 * 2)

            = 3600 (Unfavorable)

B) 2) Material Usage Variance = (Standard Quantity - Actual Quantity) * Standard Price

Standard Quantity = (Actual Volume * Standard Direct Material per unit

Now , Material Usage Variance =      [(3600 * 2.40) - 7200] * 1.90

Material Usage Variance = 2736 Favorable

C) Labor Variance Table:

Particulars

Amount

Standard rate per hour

4.10

Actual rate per hour

3.60

Standard Hour For Flexible Budget (3600 * 2.10)

7560

Actual Hour (3600 * 2.20)

7920

D) 1) Labor Price Variance :

Labor Price Variance = (Standard rate per hour- Actual rate per hour) * Actual Hours

                                    = (4.10 – 3.60) * 7920

                                    = 3960 (F)

D) 2) Labor Usage Variance = (Standard hours - Actual Hours ) * Standard rate per hour

= (7560-7920) * 4.10

= 1476 U

E) Predetemined Overhead Rate = Total Expected fixed overheads / Planned Volume

                                                = 19250 / 3500 =         5.5 per unit

F) Fixed Cost Spending Variance:

Budgeted Fixed Overhead Expenses - Actual Fixed Overhead Expenses

= 19250 - 15550

= 3700 Favorable

G) Fixed Cost Volume Variance:

Absorbed Fixed Overhead - Budgeted Fixed Overhead

Absorbed Fixed Overhead = (Actual Volume * Predetermined overhead rate)

Now, Fixed Cost Volume Variance = 3600 * 5.5 – 19250    = 550 Favorable