HADM 2210 Variance Analysis Classwork

A company reports the following Information for its direct labor. Actual hours of direct labor used Actual rate of direct labor per hour Standard rate of direct labor per hour Standard hours of direct labor for units produced AH = Actual Hours SH - Standard Hours AR = Actual Rate SR Standard Rate = 59,000 $ 16 $ 14 60,100 Compute the direct labor rate and efficiency variances and Identify each as favorable or unfavorable. Actual Cost Standard Cost

A company reports the following information for its direct labor. Actual hours of direct labor used Actual rate of direct labor per hour Standard rate of direct labor per hour Standard hours of direct labor for units produced ! AH = Actual Hours SH= Standard Hours AR= Actual Rate SR Standard Rate Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable. Q F1 Actual Cost @ 2 W F2 # 3 E 80 F3 $ $ 4 0 Ơ F4 R $ % 5 0 0 * DII 8 F8 Standard Cost ( 9 F9 ) U I O F1

Print Item Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $1.10 90 Actual quantity purchased and used in production 110 Standard quantity for units produced Actual labor rate per hour $15 Standard labor rate per hour $16 Actual hours 200 230 Standard hours for units produced A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance Material quantity variance Labor rate variance Labor efficiency variance 2$ B. What are some possible causes for this combination of favorable and unfavorable variances?

Working Backwards from Variance Data Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system: The company’s manufacturing overhead cost is applied to production on the basis of direct labor-hours. AJI of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored. Required: 1. How many units were produced last period? 2. How many pounds of direct material were purchased and used in production? 3. What was the actual cost per pound of material? 4. How many actual direct labor-hours were worked during the period? 5. What was the actual rate paid per direct labor-hour? 6. How much actual variable manufacturing overhead cost was incurred during the period?

World Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labor Variable manufacturing overhead Standard Quantity or Hours per Unit of Output O 24.979 grams O 28,980 grams O 26,900 grams O 26,910 grams 6.9 grams 0.90 hours 0.90 hours Standard Price or Rate S 9.20 per gram S 21.20 per hour S 3.60 per hour The actual output for the period was 3,900 units. The standard amount of materials allowed for the actual output is closest to:

Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Direct materials Standard Price or Rate $ 8.30 per liter $27.70 per hour $ 7.20 per hour 8.70 liters Direct labor 0.50 hours Variable manufacturing overhead 0.50 hours The company has reported the following actual results for the product for September: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production 10,900 units 96,300 liters $823,500 94,850 liters 5,000 hours Actual direct labor-hours Actual direct labor cost $142,302 Actual variable overhead cost $ 32,414 Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September.…

Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.   Inputs Standard Quantity or Hours per Unit of Output Standard Price or Rate Direct materials   8.80 liters $ 8.40 per liter Direct labor   0.40 hours $ 28.70 per hour Variable manufacturing overhead   0.40 hours $ 7.30 per hour     The company has reported the following actual results for the product for September:           Actual output   11,000 units Raw materials purchased   98,400 liters Actual cost of raw materials purchased $ 854,500   Raw materials used in production   96,830 liters Actual direct labor-hours   4,000 hours Actual direct labor cost $ 120,302   Actual variable overhead cost $ 25,414       Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate…

Kropf Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Standard Quantity or Hours per Unit of Output Inputs Standard Price or Rate Direct materials $ 7.30 per liter $24.70 per hour $ 6.20 per hour 7.70 liters Direct labor 0.50 hours Variable manufacturing overhead 0.50 hours The company has reported the following actual results for the product for September: Actual output Raw materials purchased Actual cost of raw materials purchased Raw materials used in production 9,900 units 76,500 liters $585,500 76,240 liters 4,650 hours $120,302 $ 23,614 Actual direct labor-hours Actual direct labor cost Actual variable overhead cost Required: a. Compute the materials price variance for September. b. Compute the materials quantity variance for September. c. Compute the labor rate variance for September. d. Compute the labor efficiency variance for September.…

Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $1.10 Actual quantity purchased and used in production 100 Standard quantity for units produced 130 Actual labor rate per hour $15 Standard labor rate per hour $17 Actual hours 200 Standard hours for units produced 230 A.  Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance   Material quantity variance   Labor rate variance   Labor efficiency variance

Acme Inc. has the following information available: Actual price paid for material $0.90 Standard price for material $1.10 Actual quantity purchased and used in production 90 Standard quantity for units produced 100 Actual labor rate per hour $16 Standard labor rate per hour $18 Actual hours 210 Standard hours for units produced 240 A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material price variance Favorable v Material quantity variance Favorable v Labor rate variance Favorable Labor efficiency variance Favorable v B. What are some possible causes for this combination of favorable and unfavorable variances? We paid less for our raw material, and assembly took fewer hours than expected.

Compute all material and labor variances correctly Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. $7.00 Direct materials-1 pound plastic at $7.00 per pound Direct labor-1.0 hours at $11.65 per hour 11.65 7.00 7.00 $32.65 Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit The predetermined manufacturing overhead rate is $14.00 per direct labor hour ($14.00 1.0). It was computed from a master manufacturing overhead budget based on normal production of 5,300 direct labor hours (5,300 units) for the month. The master budget showed total variable costs of $37,100 ($7.00 per hour) and total fixed overhead costs of $37,100 ($7.00 per hour). Actual costs for October in producing 4.600 units were as follows. Direct materials (4.770 pounds) Direct labor (4,440 hours) Variable overhead Fixed overhead Total manufacturing costs $33.867 52.614 48.942 17,258 $152.681 The purchasing department buys the…

A company reports the following information for its direct labor. Actual hours of direct labor used (AH) Actual rate of direct labor per hour (AR) Standard rate of direct labor per hour (SR) Standard hours of direct labor for units produced (SH) 72,000 $ 16 $ 15 73,300 AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable. Actual Cost Standard Cost

Henry Company has established the following standards for the costs of one unit of its product. Thestandard production overhead costs per unit are based on direct-labor hours. Calculation for standard perunit cost is as follows:                                                    Std Cost           Std Qty         Std Price/Rate Direct Material                            $ 14.40            6.00 kg          $ 2.40 per kg Direct Labor                                $ 3.00             0.40 hour       $ 7.50 per hour Variable Overhead                      $ 4.00            0.40 hour      $ 10.00 per hour Fixed Overhead*                        $ 4.80            0.40 hour      $ 12.00 per hour Total                                          $ 26.20  *based on practical capacity of 2,500 direct-labor hour per month During December 2020, Henry purchased 30,000 kg of direct material at a total cost of $75,000. The total wages for December were $20,000, 75% of which were for direct labor. Henry…

Henry Company has established the following standards for the costs of one unit of its product. Thestandard production overhead costs per unit are based on direct-labor hours. Calculation for standard perunit cost is as follows:                                                    Std Cost           Std Qty         Std Price/Rate Direct Material                            $ 14.40            6.00 kg          $ 2.40 per kg Direct Labor                                $ 3.00             0.40 hour       $ 7.50 per hour Variable Overhead                      $ 4.00            0.40 hour      $ 10.00 per hour Fixed Overhead*                        $ 4.80            0.40 hour      $ 12.00 per hour Total                                          $ 26.20  *based on practical capacity of 2,500 direct-labor hour per month During December 2020, Henry purchased 30,000 kg of direct material at a total cost of $75,000. The total wages for December were $20,000, 75% of which were for direct labor. Henry…