Close em Announcements on og 800 2320 1300 1100 5520 Direct

Close em Announcements on og $ 8.00 23.20 13.00 11.00 $55.20 Direct labor-2.00 hours at $11.60 per hour overhead Fixed manufacturing overhead Total standard cost per unit r budget showed total variable costs of $72,800 ($6.50 per hour) and total fixed overhead costs of $61,600 ($s.50 per hour). Actual costs for October in producing 4,000 units were as follows 33,948 92,630 67,198 30,602 Fixed overhead MacBook Air

Solution

Material Price Variance = (SR – AR) * Actual Qty

SR = $ 8 per pound

AR = 33948/4140 = $8.2

AQ = 4140

=(8 – 8.2) * 4140 = 828 (U)

Material Quantity Variance = (SQ – AQ) * SR

SQ = 4000 units * 1 = 4000

= (4000 – 4140) * 8 = 1120 (U)

Total Material Variance = Material Price Variance + Material Quantity Variance

= 828 (U) + 1120 (U) = 1948 (U)

Labour Price Variance = (SR – AR) * Actual Hrs

SR = $ 11.60

AR = 92630/7850 = $ 11.8

Actual Hrs = 7850 hrs

=(11.60 – 11.80) * 7850 = 1570 (U)

Labour Quantity Variance = (S Hrs – A Hrs) * SR

S Hrs = 4000 * 2 = 8000

(8000 – 7850) * 11.60 = 1740 (F)

Total Labour Variance = Labour Price Variance + Labour Quantity Variance

= 1570 (U) + 1740 (F) = 170 (F)

(b) Total Overhead Variance :-

Total V. O/H Variance = Std Cost – Actual cost

Std cost = 13 * 4000 = 52000

Actual cost = 67198

= 52000 – 67198 = 15198(U)

Total F. O/H Variance = Std Cost – Actual cost

Std cost = Recovery rate * Actual hrs

Recovery rate = Bdt OH/Bdt hrs

    = 61600/11200 = 5.5

Std cost = 5.5 * 7850 = 43175

Actual cost = 30602

= 43175 – 30602 = 12573 (F)

Otal O/H Variance = Total V. O/H Variance + Total F. O/H Variance

= 15198(U) + 12573(F) = 2625 (U)