Calculate Variances The 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: Answer Standard cost: Answer Labor rate Answer Answer Labor efficiency Answer Answer Variable Overhead Variances Actual cost: Answer Split cost: Answer Standard cost: Answer Variable overhead spending Answer Answer Variable overhead efficiency Answer Answer

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 3PA: Direct materials, direct labor, and factory overhead cost variance analysis Mackinaw Inc. processes...

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Calculate Variances
The following summary data relate to the operations of Randolph Company for July, during which 4,500 finished units were produced:

	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:	Answer
Standard cost:	Answer
Labor rate	Answer	Answer
Labor efficiency	Answer	Answer

Variable Overhead Variances
Actual cost:	Answer
Split cost:	Answer
Standard cost:	Answer
Variable overhead spending	Answer	Answer
Variable overhead efficiency	Answer	Answer

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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