Don't give answer in image Calculate VariancesThe following summary data relate to the operations of Randolph Company for July, during which 4,500 finished units were produced:Standard Units Total ActualCostsCostsDirect materialStandard (0.6 lb. @ $14.00/lb.).Actual (3,000 lb. @ $14.10/lb.)$8.40$42,300Direct laborStandard (0.8 hr. @ $17.80/hr.)$14.24Actual (3,800 hrs. @ $17.20/hr.)65,360Variable overheadStandard (0.8 hr. @ $12.50/hr.)$10.00Actual50,100Total$32.64$157,760Determine the following variances:Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.Materials VariancesActual cost:U/FSplit cost:Standard cost:Materials priceMaterials efficiencyLabor VariancesU/FActual cost:Split cost:Standard cost:Labor rateLabor efficiencyVariable Overhead VariancesU/FActual cost:Split cost:Standard cost:Variable overhead spendingVariable overhead efficiency

Randolph Company - Variances for July1. Materials Variances:Actual Cost: $42,300Standard Cost:…

Answered: Calculate Variances The following…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 9EB: Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured...

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At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Calculating factory overhead The standard capacity of a factory is 8,000 units per month. Cost and production data follow: Calculate the amount of factory overhead allowed for the actual volume of production each month and the variance between budgeted and actual overhead for each month.
Ellis Companys labor information for September is as follows: A. Compute the standard direct labor rate per hour. B. Compute the direct labor time variance. C. Compute the standard direct labor rate if the direct labor rate variance was $2,712.30 (unfavorable).
Standard cost summary; materials and labor cost variances Perkins Processors Inc. produces an average of 10,000 units each month. The factory standards are 20,000 hours of direct labor and 10,000 pounds of materials for this volume. The standard cost of direct labor is 9.00 per hour, and the standard cost of materials is 4.00 per pound. The standard factory overhead at this level of production is 20,000. During the current month the production and cost reports reflected the following information: On the basis of this information: 1. Prepare a standard cost summary. 2. Calculate the materials (use the materials purchase price variance) and labor cost variances, and indicate whether they are favorable or unfavorable, using the formulas on pages 421422 and 424.
Eagle Inc. uses a standard cost system. During the most recent period, the company manufactured 115,000 units. The standard cost sheet indicates that the standard direct labor cost per unit is $1.50. The performance report for the period includes an unfavorable direct labor rate variance of $3,700 and a favorable direct labor time variance of $10,275. What was the total actual cost of direct labor incurred during the period?
Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450 hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The standard cost card uses $15.50 as the standard hourly rate. A. Compute the direct labor rate and time variances for the month of June, and also calculate the total direct labor variance. B. If the standard rate per hour was $16.00, what would change?
Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid $32 per hour for labor, for a total of $718,848. The standard hours per unit are 6.4, and the standard labor wage rate is $38.40 per hour. A. What are the actual hours worked? B. What are the standard hours for the units made? C. What is the direct labor rate variance for April? D. What Is the direct labor time variance for April? E. What is the total direct labor variance for April?
Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a small manufacturing facility. Manufacturing has 25 employees. Each employee presently provides 40 hours of productive labor per week. Information about a production week is as follows: Instructions Determine (A) the standard cost per unit for direct materials and direct labor; (B) the price variance, quantity variance, and total direct materials cost variance; and (C) the rate variance, time variance, and total direct labor cost variance.
Calculation of materials and labor variances Fritz Corp. manufactures and sells a single product. The company uses a standard cost system. The standard cost per unit of product follows: The charges to the manufacturing department for November, when 5,000 units were produced, follow: The Purchasing department normally buys about the same quantity as is used in production during a month. In November, 5,500 lb were purchased at a price of $2.90 per pound. Required: Calculate the following from standard costs for the data given, using the formulas on pages 421–422 and 424: Materials quantity variance. Materials purchase price variance (at time of purchase). Labor efficiency variance. Labor rate variance. Give some reasons as to why both the materials quantity variance and labor efficiency variance might be unfavorable.
Calculate VariancesThe following summary data relate to the operations of Randolph Company for July, during which 4,500 finished units were produced: Standard Units Costs Total Actual Costs Direct material Standard (0.6 lb. @ $13.00/lb.) $7.80 Actual (3,000 lb. @ $13.30/lb.) $39,900 Direct labor Standard (0.8 hr. @ $16.80/hr.) $13.44 Actual (3,800 hrs. @ $16.40/hr.) 62,320 Variable overhead Standard (0.8 hr. @ $11.50/hr.) $9.20 Actual - 46,100 Total $30.44 $148,320 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Materials price Answer Answer Materials efficiency Answer Answer Labor Variances Actual cost: Answer Split cost:…
The following data relate to direct materials costs for February:Materials cost per yard: standard, $1.91; actual, $2.04Yards per unit: standard, 4.70 yards; actual, 5.08 yardsUnits of production: 9,000The direct materials price variance is a.$5,499.00 favorable b.$1,170.00 unfavorable c.$5,943.60 favorable d.$5,943.60 unfavorable
STANDARD COSTING The following July information is for Kingston Company. Standards: Material 3.0 feet per unit @$ 4.20 per foot. Labor 2.5 hours per unit @ $ 7.50 per hour Actuals: Production 2,750 units produced during the month . Materials 8700 feet used, 9,000 feet purchased @ $4.50 per foot. Labor 7,000 direct labor hours @ 7.90 per hour 1. What is the material price variance ( calculated at point of purchase). a) $2700 U b) $2700 F c) $ 2610 F d) $ 2610 U 2. What is the material quantity variance ? a) $3105 F b)$1050F c) 3105 U d) 1890 U 3.What is the labor rate variance ? a) 3480 U b) 3480 F c) 2800 U d) 2800 F 4.What is the labor efficacy variance ? a)$ 1875 U b) $938 U c) $ 1875 U d) $ 1125 U

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