1.a) Material Variances: Standard quantity allowed for actual output Standard price per pound Actual Quantity purchased Actual Quantity used Actual price per pound 45000 5 60000 49200 $ 4.95 MATERIAL PRICE VARIANCE $ 3,000 Favorable MATERIAL QUANTITY VARIANCE $ -21,000 Unfavorable 1.b) Labor Variances: o Standard Hours allowed for actual output 1 Standard rate per hour 2 Actual Hours worked B Actual rate per hour 4 LABOR RATE VARIANCE 5 LABOR EFFICIENCY VARIANCE 12000 $ 16 11800 17.00 $ -11,800 Unfavorable 3,200 Favorable 1.c) Variable Overhead Variances: 6000 - Standard Hours allowed for actual output B Standard rate per hour e Actual Hours O Actual rate per hour 1 VARIABLE O/H RATE VARIANCE 5900 $ $ 3.10 -590 Unfavorable 300 Favorable 2 VARIABLE O/H EFFICIENCY VARIANCE %24
1.a) Material Variances: Standard quantity allowed for actual output Standard price per pound Actual Quantity purchased Actual Quantity used Actual price per pound 45000 5 60000 49200 $ 4.95 MATERIAL PRICE VARIANCE $ 3,000 Favorable MATERIAL QUANTITY VARIANCE $ -21,000 Unfavorable 1.b) Labor Variances: o Standard Hours allowed for actual output 1 Standard rate per hour 2 Actual Hours worked B Actual rate per hour 4 LABOR RATE VARIANCE 5 LABOR EFFICIENCY VARIANCE 12000 $ 16 11800 17.00 $ -11,800 Unfavorable 3,200 Favorable 1.c) Variable Overhead Variances: 6000 - Standard Hours allowed for actual output B Standard rate per hour e Actual Hours O Actual rate per hour 1 VARIABLE O/H RATE VARIANCE 5900 $ $ 3.10 -590 Unfavorable 300 Favorable 2 VARIABLE O/H EFFICIENCY VARIANCE %24
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2BE: Direct labor variances Bellingham Company produces a product that requires 4 standard direct labor...
Related questions
Question
1. Summarize the variances that you computes in (1) above by showing the net overall favorable or unfavorable variances for the month. What impact did this figure have on the company's income statement? Show computations
2.Pick out the two most significant variances that you computed in (1) above. Explain tMs. Dunn possible causes of these variances.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning