The following data were drawn from the records of StuartCorporation.
Planned volume for year (staticbudget) 4,100 units Standard direct materials costper unit 3.00 pounds @ $ 1.60 per pound Standard direct labor cost perunit 2.80 hours @ $ 4.50 per hour Total expected fixed overheadcosts $ 15,580 Actual volume for the year(flexible budget) 4,300 units Actual direct materials cost perunit 2.70 pounds @ $ 2.00 per pound Actual direct labor cost perunit 3.20 hours @ $ 4.20 per hour Total actual fixed overheadcosts $ 11,880
Required
Prepare a materials variance information table showing thestandard price, the actual price, the standard quantity, and theactual quantity.
Calculate the materials price and usage variances. Indicatewhether the variances are favorable (F) or unfavorable (U).
Prepare a labor variance information table showing the standardprice, the actual price, the standard hours, and the actualhours.
Calculate the labor price and usage variances. Indicate whetherthe variances are favorable (F) or unfavorable (U).
Calculate the predetermined overhead rate, assuming that Stuartuses the number of units as the allocation base.
Calculate the fixed cost spending variance. Indicate whether thevariance is favorable (F) or unfavorable (U).
Calculate the fixed cost volume variance. Indicate whether thevariance is favorable (F) or unfavorable (U).
Prepare a materials variance information table showing thestandard price, the actual price, the standard quantity, and theactual quantity. (Round "Standard price" and "Actual price" to 2decimal places.)
Materials Variance Information Table Standardprice perpound Actualprice perpound Standardquantity for flexible budget pounds Actualquantity used pounds
Calculate the materials price and usage variances. Indicatewhether the variances are favorable (F) or unfavorable (U). (Select"None" if there is no effect (i.e., zero variance).)
Materialprice variance Materialusage variance
Prepare a labor variance information table showing the standardprice, the actual price, the standard hours, and the actual hours.(Round "Standard price" and "Actual price" to 2 decimalplaces.)
Labor Variance Information Table Standardprice perhour Actualprice perhour Standardhours for flexible budget Actualhours used
Calculate the labor price and usage variances. Indicate whetherthe variances are favorable (F) or unfavorable (U). (Select "None"if there is no effect (i.e., zero variance).)
Laborprice variance Laborusage variance
Calculate the predetermined overhead rate, assuming that Stuartuses the number of units as the allocation base. Calculate thefixed cost spending variance and the fixed cost volume variance.Indicate whether the variance is favorable (F) or unfavorable (U).(Round "Predetermined overhead rate" answer to 2 decimal places.Select "None" if there is no effect (i.e., zero variance).)
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e. Predetermined overhead rate perunit f. Fixedcost spending variance g. Fixedcost volume variance
The following data were drawn from the records of StuartCorporation.
| Planned volume for year (staticbudget) | 4,100 | units | |||||
| Standard direct materials costper unit | 3.00 | pounds | @ | $ | 1.60 | per pound | |
| Standard direct labor cost perunit | 2.80 | hours | @ | $ | 4.50 | per hour | |
| Total expected fixed overheadcosts | $ | 15,580 | |||||
| Actual volume for the year(flexible budget) | 4,300 | units | |||||
| Actual direct materials cost perunit | 2.70 | pounds | @ | $ | 2.00 | per pound | |
| Actual direct labor cost perunit | 3.20 | hours | @ | $ | 4.20 | per hour | |
| Total actual fixed overheadcosts | $ | 11,880 | |||||
Required
Prepare a materials variance information table showing thestandard price, the actual price, the standard quantity, and theactual quantity.
Calculate the materials price and usage variances. Indicatewhether the variances are favorable (F) or unfavorable (U).
Prepare a labor variance information table showing the standardprice, the actual price, the standard hours, and the actualhours.
Calculate the labor price and usage variances. Indicate whetherthe variances are favorable (F) or unfavorable (U).
Calculate the predetermined overhead rate, assuming that Stuartuses the number of units as the allocation base.
Calculate the fixed cost spending variance. Indicate whether thevariance is favorable (F) or unfavorable (U).
Calculate the fixed cost volume variance. Indicate whether thevariance is favorable (F) or unfavorable (U).
Prepare a materials variance information table showing thestandard price, the actual price, the standard quantity, and theactual quantity. (Round "Standard price" and "Actual price" to 2decimal places.)
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Calculate the materials price and usage variances. Indicatewhether the variances are favorable (F) or unfavorable (U). (Select"None" if there is no effect (i.e., zero variance).)
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Prepare a labor variance information table showing the standardprice, the actual price, the standard hours, and the actual hours.(Round "Standard price" and "Actual price" to 2 decimalplaces.)
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Calculate the labor price and usage variances. Indicate whetherthe variances are favorable (F) or unfavorable (U). (Select "None"if there is no effect (i.e., zero variance).)
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Calculate the predetermined overhead rate, assuming that Stuartuses the number of units as the allocation base. Calculate thefixed cost spending variance and the fixed cost volume variance.Indicate whether the variance is favorable (F) or unfavorable (U).(Round "Predetermined overhead rate" answer to 2 decimal places.Select "None" if there is no effect (i.e., zero variance).)
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Related questions
Requirements
1. Compute the variable manufacturing overhead variances. What do each of these variances tellâ management?
2. Compute the fixed manufacturing overhead variances. What do each of these variances tellâ management?
Standard Price and Volume
| Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . . | 13 pounds per pot at a cost of $4.00 |
| per pound | |
| Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4.0 hours at a cost of $17.00 per hour |
| Standard variable manufacturing | |
| overhead rate. . . . . . . . . . . . . . . . . . . . . . . . . | $7.00 per direct labor hour |
| Budgeted fixed manufacturing overhead. . . . . . . . . | $50,000 |
| Standard fixed MOH rate. . . . . . . . . . . . . . . . . . . | $10.00 per direct labor hour (DLH) |
Actual Results
Country Designs allocated fixed manufacturing overhead to production based standard direct labor hours. Last month, the company reported the following actual results for the production of 1,300 flower pots:
| Direct materials. . . . . . . . . . . . . . . . . . . . . . . . | Purchased 18,510 pounds at a cost of |
| $4.50 per pound; Used 17,810 pounds to | |
| produce 1,300 pots | |
| Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . | Worked 4.5 hours per flower pot (5,850 |
| total DLH) at a cost of $16.00 per hour | |
| Actual variable manufacturing overhead. . . . . | $7.20 per direct labor hour for total |
| actual variable manufacturing overhead | |
| of $42,120 | |
| Actual fixed manufacturing overhead. . . . . . . | $49,500 |
| Standard fixed manufacturing overhead | |
| allocated based on actual production. . . . . . . | $52,000 |
topaz company makes one product and has set the followingstandards for materials and labor:
| direct materials | direct labor | |
| standard quantity or hours per unit | ? pounds | 2.5 hours |
| standard price or rate | ? per pound | $9.00 per hour |
| standard cost per unit | ? | $22.50 |
during the past month, the company purchased 6,000 pounds ofdirect materials at a cost of $16,500. all of this material wasused in the production of 1,400 units of product. direct labor costtotaled $28,500 for the month. the following variances have beencomputed:
| materials quantity variance | $1,200 U |
| total materials spending variance | $300 F |
| labor efficiency variance | $4,500 F |
for direct labor:
a. compute the actual direct labor cost per hour for themonth
b. compute the labor rate variance
