A manufactured product has the following information for June. Standard 5 lbs. e $7 per lb. 2 hrs. @ $16 per hr. 2 hrs. @ $11 per hr. Actual Direct materials 44,500 lbs. e $7.10 per lb. 17,400 hrs. @ $16.50 per hr. $200,200 ৪, ৪0০ Direct labor Overhead Units manufactured Compute the direct labor rate variance and the direct labor efficiency variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Rate per hour" answers to 2 decimal places.) AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate

Q: The standard cost of Product B manufactured by Bramble Company includes 2.30 units of direct…

A: Total material variance = Standard material cost - Actual material cost   Material price variance =…

Q: Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During…

A: 1. October: Actual Cost           Standard Cost AH x AR   AH x SR   SH x SR 11500 x 15.7…

Q: The following summarized manufacturing data relate to Thomas Corporation's April operations, during…

A: If amount is negative using following formula, then Favorable variance, otherwise unfavorable…

Q: A manufacturer reports the following standard cost card. For June, the company made 1,200 units and…

A: The total cost variance is equivalent to the contrast between actual expenses and planned expenses.…

Q: The following materials standards have been established for a particular product: Standard quantity…

A: We know that, Material Price variance = (Standard price - actual price) * Actual quantity purchased…

Q: Required information [The following information applies to the questions displayed below.] A…

A: Actual quantity is the quantity actually used for producing the product. Standard quantity is the…

Q: Suver Corporation has a standard costing system. The following data are available for June: Actual…

A: Material price variance = 2,500 Unfavorable Standard price = $2 Actual quantity = 25,000

Q: Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Algers Company produces dry…

A: Standard costs provide information that can be used to evaluate performance. Standard costs are…

Q: equired: 1. Compute price and usage variances for direct materials. MPV $fill in the blank…

A:

Q: A manufactured product has the following information for June. Standard Actual 5 lbs. @ $7 per lb. 3…

A: 1. DIRECT LABOR RATE VARIANCE :   ACTUAL HOURS X ACTUAL RATE PER HOUR  (22,700 HRS X $17.40 PER…

Q: Juhasz Corporation makes a product with the following standards for direct labor and variable…

A: Variable overhead variance - it is the difference between the budgeted variable overhead and the…

Q: For the month of August, M Company’s records disclosed the following data relating to direct labor:…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: ABC Company uses standard costing for each specialized product.  The following information is…

A: Labor efficiency variance = (Actual hours worked - Standard hours allowed) x Standard rate per hour

Q: The following information relates to the direct labor at Padmaja Manufacturing, Inc. for March:…

A: Actual hours = 2300 units x 1.50 Actual hours = 3450 hours   Standard hours = 2300 units x 1.40…

Q: The following information is provided The per-unit standards are 2 pounds at $5 per pound. Last…

A: Solution-a Material Price Variance = (Actual Cost) - (Standard rate per pound * Actual Quantity)…

Q: Marv Company's direct labor costs for manufacturing its only product were as follows for October.…

A: The standard direct labour hours per unit is the rate that is estimated by the company. This is also…

Q: The following labor standards have been established for a particular product Standard labor-hours…

A: Solution:- Introduction:- The following formula used to calculate Labor efficiency variance =…

Q: Required information [The following information applies to the questions displayed below.] A…

A: Computation of Direct Labour rate Variance:: Actual Hours*(Standard rate--Actual rate).. 14,300…

Q: The standard cost of Product B manufactured by Pharrell Company includes 2.4 units of direct…

A: Answer a) Total material variance =Standard  Cost - Actual Cost=(11100 x 2.4 x 5.1) -(27000 x…

Q: 3. Compute the fixed overhead spending and volume variances. Spending Variance $4 Volume Variance 4.…

A: Solution:- Calculation of Fixed manufacturing overhead spending variance and Fixed manufacturing…

Q: Required information [The following information applies to the questions displayed below.] A…

A: Variance is the difference of the actual cost with the standard cost which is helpful for the…

Q: Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Rand Company produces dry…

A: Direct Material- Direct material refers to the unprocessed materials that are directly used in the…

Q: Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Algers Company produces dry…

A: Variance analysis refers to the analysis of variances which are calculated by differentiating…

Q: What is the total variable overhead variance for March for Harry?

A: Given information is: Harry Company's standard variable overhead rate is $6.00 per direct labor…

Q: Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Algers Company produces dry…

A: Note:In the given question Direct Material Price Variance is wrong. Therefore, it is calculated…

Q: The following labor standards have been established for a particular product: Standard labor hours…

A: Labor Variance: When there is difference between the standard labor cost of product and actual labor…

Q: Lebron Co. manufactures product X with the following standard costs: Direct materials, 20 yards @…

A: Given data, Standard price of material (SP)=P13.50 Production during may=500 units Therefore,…

Q: Question During December, Wards Company’s actual costs incurred in the production of 1,000 units…

A: Standard cost means the cost which the company is expecting to be incurred on the basis of estimate…

Q: A manufactured product has the following information for June. Standard 6 lbs. @ $8 per lb. 3 hrs. @…

A: The variance is a measure of variability. It is calculated by taking the average of squared…

Q: The following labor standards have been established for a particular product:     Standard…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: The following information pertains to Boomerang Company's direct labor for March: Standard direct…

A: Formula: Labor rate variance = ( Actual hours x actual rate ) - ( Actual hours x standard rate )…

Q: total cost variance

A: Standard cost per unit = Direct material per unit +Direct labor per unit + Overhead per unit

Q: A manufactured product has the following information for June. Standard Actual 5 lbs. @ $7 per lb. 3…

A: SOLUTION-    FORMULA FOR COMPUTING STANDARD COST PER UNIT-   STANDARD COST PER UNIT =DIRECT MATERIAL…

Q: Prepare the standard cost card showing standard cost per unit. (2) Compute total budgeted cost for…

A: Standard Cost :— It is the predetermined cost that is estimated to be incurred in the future.

Q: Tub Co. uses a standard cost system. The following information pertains to direct labor for product…

A: Formula: Labor efficiency variance = Standard rate x ( Actual hours - standard hours )

Q: Compute all material and labor variances correctly Rogen Corporation manufactures a single product.…

A: Standard costing was used to make various analysis of cost by comparing actual cost expended with…

Q: Mindanao Enterprises uses standard costing. For the month company reported the following data: I.…

A: Labor efficiency variance = (Actual hours worked - Standard hours allowed)*Standard rate per hour…

Q: The following information pertains to Boomerang Company's direct labor for March: Standard DL…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: Coronado Company's standard materials cost per unit of output is $8.80 (2.00 pounds x $4.40). During…

A: Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…

Q: he following materials standards have been established for a particular product:   Standard quantity…

A: Variance is considered as the difference between budgeted value and actual results. The management…

Q: A manufactured product has the following information for June. Standard Actual 6 1bs. @ 57 per lb. 3…

A: Meaning of Direct Labor Rate Variance Direct Labor Rate Variance is the measure of difference…

Q: The following materials standards have been established for a particular product: Standard quantity…

A: The discrepancy between the actual amount incurred on direct material purchases for a given time and…

Q: XYZ Corporation makes a product whose direct labor standards are 0.8 hours per unit and $25 per…

A: The standard is set in advance, and the actual performance is measured against it. If the actual…

Q: The following labor standards have been established for a particular product:…

A: Direct Labor Rate Variance is the measure of difference between the actual cost of direct labor and…

Q: Required information [The following information applies to the questions displayed below.] A…

A: >Cost Variance is the difference between standard cost allowed and the actual cost…

Q: A manufactured product has the following information for August.     Standard   Actual Direct…

A: Working Notes: 1. Direct materials = lbs. per unit *  rate per lb =(2 lbs * $2.5) = $5  2. Direct…

Q: 1.  What is the variable overhead spending variance? 2. Using the three-variance approach, what is…

A: Variable Overhead Spending Variance = Actual Variable overhead - (Variable Overhead per hour x…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.