b) Fan Trading produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. During the month of April, 750,000 bottles were produced using 21,000 labor hours @ RM10.00. The standard wage rate is RM 9.50 per hour. Required: i. Calculate the total variance for aluminium for the month of April. ii. Calculate the labor rate and efficiency variances.

Q: Barley, Inc., produces a product and has the following as standard costs per unit for materials and…

A: Actual price=Material usedQuantity=$800,00050,000=$16

Q: The standard to manufacture a given electronic component is 10 transistors at $75 per transistor.…

A: Answer) Calculation of Material Price variance Material price variance = (Standard price per…

Q: The standard cost of Product DD is 4 hours of labor at a rate of $12.00 per hour. During the month…

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

Q: Brookman, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.5 hour per​…

A: Standard hours means standard hours for actual output  = 6800×0.5 =3400 hours

Q: The data below relate to the standards for the sole product of Marshal Corporation in August:…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Denver Enterprises recently used 14,000 labor hours to produce 7,500 completed units. According to…

A: The variance is said to be difference between actual and standard data.

Q: Pretty & Beautiful Company has the following direct labor standard for its production. 6 standard…

A: Following is the Labour efficiency Variance

Q: Perez, Inc. recently completed 45,000 units of a product that was expected to consume five pounds of…

A: Standard price =$5.50 per poundStandard quantity =5 pound per unitActual output=45000…

Q: Sierra Water Corporation uses a standard cost system for the production of its transistors. The…

A: Labor Efficiency Variance = (Standard labor hours allowed for actual output - Actual labor hours…

Q: A company developed the following per-unit standards for its product: 2 pounds of direct materials…

A: Direct material price variance: It refers to a difference between the actual price that is paid by…

Q: April Industries employs a standard costing system in the manufacturing of its sole product, a park…

A: A: Note: Standard cost per unit is calculated by dividing the standard quantity and standard cost.

Q: Longman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is…

A: Direct material variance: direct material variance is variance analysis done by the company to know…

Q: Ruby company produces a chair that requires 6 yds. of material per unit. The standard price of one…

A: Variance is an important concept in accounting. It refers to the difference between a budgeted or a…

Q: The standards for product V28 call for 7.5 pounds of a raw material that costs $18.10 per pound.…

A: Given,

Q: o Yealink Company produces a product that requires 5.0 standard pounds per unit. The standard price…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…

A: Direct materials Price variance = (SP - AP)*AQ = ($9 - $9.25)*1500  = $375 U

Q: A company produces widgets with budgeted standard direct materials of 2 pounds per widget at $5 per…

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

Q: Denver Enterprises recently used 14,000 labor hours to produce 7,500 completed units. According to…

A: Standard hour = No. of units produced x standard hour per unit = 7500 units x 2 hour = 15,000 hour

Q: Exeter has a materials standard of 1 pound per unit of output. Each pound has a standard price of…

A: Direct Material price variance = (Actual Material price per pound - Standard Material price per…

Q: Amalgamated Manipulation Manufacturing’s (AMM) standards anticipate that there will be 3 pounds of…

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

Q: Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price…

A: Material Cost Variance: The difference between the standard cost of direct materials specified for…

Q: Windy City manufactures decorative weather vanes that have a standard materials cost of two pounds…

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

Q: Perfect Builders makes all sorts of moldings. Its standard quantity of material allowed is 1 foot of…

A: Material price variance = ( Actual price - standard price ) x Actual quantity. Material usage…

Q: Exeter has a materials standard of 1 pound per unit of output. Each pound has a standard price of…

A: Identify the correct option. Working note: Calculate the standard quantity:

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: In budgeting as well as management accounting, variance analysis seems to be the examination of…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A:

Q: Queen Industries uses a standard costing system in the manufacturing of its single product. It…

A: Direct labor cost variance refers to the variance in actual cost of labor concerning the budgeted…

Q: Newbill Enterprises recently used 34,000 labor hours to produce 11,200 completed units. According to…

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

Q: Myers Corporation has the following data related to direct materials costs for November: actual…

A: Direct material  price variance =  Actual quantity ×(Standard price - Actual price)

Q: Ruby Company produces a chair that requires 5 yards of material per unit. The standard price of one…

A: Here Price Variance we will get  [ Bud. Price - Actual Price] x Budgeted Qty Produced…

Q: ABC, Inc. uses standard costing for its one product, baseball bats. The standards call for 3…

A: The variance is the difference between standard production and actual production data. Direct labor…

Q: What is the direct labor (a) rate variance, (b) time variance, and (c) total cost variance? (d)…

A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…

Q: Product N requires a standard amount of 3 labour hours per unit, at a standard rate of £9.50 per…

A: Solution Actual rare of labor = actual cost / actual hours  = 42300/ 4700 = 9.00 per hour

Q: Todco planned to produce 3,000 units of its single product, Teragram, during November. The standard…

A: In Standard costing system, a standard or estimated cost is calculated for each item like direct…

Q: The following is the data for manufacturing solar panels for the month of June: Direct Direct…

A: In this question, we are required to calculate various variances. Lets understand each one by one.…

Q: For the raw materials used to make its stoves, Kleslia, SRL has a standard price of $10.92 per gram…

A: Materials price variance = (Standard price x Materials purchased) - Actual cost

Q: Denver Enterprises recently used 14,000 labor hours to produce 7,500 completed units. According to…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using…

A: Material Price Variance = ( Standard Price - Actual Price ) x Actual Quantity Material Quantity…

Q: standard for each toothpick motor is 1.25 hours at a standard cost of $9.50 per hour. During the…

A: The labour efficiency variance is the difference between the actual number of direct labour hours…

Q: Can you show me how this is done? How do I know if it is favorable or unfavorable? Bailey’s…

A: Direct Labor Efficiency Variance =  Standard Hours at Standard Rate – Actual Hours at Standard…

Q: Adams Company’s standard labor cost of producing one unit of Product DD is 4.00 hours at the rate of…

A: (a) Compute direct labor variance.

Q: Glassica, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.6 hour per…

A: The question is related to Standard Costing. The Direct labor cost variance is calculated with the…

Q: Mom’s Apple Pie Company uses a standard cost system. The standard direct labor time for each pie…

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

Q: Ambient Inc. produces aluminum cans. Each can has a standard labor requirement of 0.03hour. During…

A: A variance refers to the difference of budgeted and expected figures of revenues or expenses.

Q: Oxford Co. has a materials standard of 21 pounds per unit of output. Each pound has a standard price…

A: A materials quantity variance compares the actual and expected direct material used in manufacturing…

Q: The company produces a single product and has prepared the following standard cost sheet for one…

A: Direct  Material price variance = (Standard price - actual price)*actual quantity purchased Direct…

Q: Glassica, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is…

A: Material efficiency variance = Standard price × [Actual quantity - Standard quantity]

Q: Sunshine Company has the following direct labor standard for its Sunny Sunglasses. 1.2 standard…

A: Standard data: Hour = SH 1.2 * 2000 = 2400 hours Rate = SR = $10 per hour Cost = SC = 10 * 2400 =…

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.