Answer only g, h, and i Determine the following:a. Total material price varianceb. Total material usage (quantity) variancec. Labor rate varianced. Labor efficiency variancee. Variable overhead spending variancef. Variable overhead efficiency varianceg. Fixed overhead spending varianceh. Volume variancei. Budget variance LO.3 (Comprehensive) Piedmont Manufacturing produces metal products with thefollowing standard quantity and cost information:Direct MaterialAluminum4 sheets at $4$ 16Copper3 sheets at $824Direct labor7 hours at $161125 machine hours at $65 machine hours at $4Variable overhead30Fixed overhead20Overhead rates were based on normal monthly capacity of 6,000 machine hours.During November, the company produced only 850 units because of a labor strike,which occurred during union contract negotiations. After the dispute was settled, thecompany scheduled overtime to try to meet regular production levels. The followingcosts were incurred in November:MaterialAluminum4,000 sheets purchased at $3.80; used 3,500 sheetsCopper3,000 sheets purchased at $8.40; used 2,600 sheetsDirect LaborRegular time5,200 hours at $16 (pre-contract settlement)Regular time900 hours at $17 (post-contract settlement)Variable Overhead$23,300 (based on 4,175 machine hours)Fixed Overhead$18,850 (based on 4,175 machine hours)

Variable overhead refers to the expenses which fluctuate with the change in the number of goods or…

etermine the following: Total material price variance Total material usage (quantity) variance Labor rate variance Labor efficiency variance Variable overhead spending variance Variable overhead efficiency variance

etermine the following: Total material price variance Total material usage (quantity) variance Labor rate variance Labor efficiency variance Variable overhead spending variance Variable overhead efficiency variance

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 14EB: Acme Inc. has the following information available: A. Compute the material price and quantity, and...

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Concept explainers

Balance of Payments

BOP is categorized into the following three components:

Question

Answer only g, h, and i

Determine the following:
a. Total material price variance
b. Total material usage (quantity) variance
c. Labor rate variance
d. Labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance
g. Fixed overhead spending variance
h. Volume variance
i. Budget variance

LO.3 (Comprehensive) Piedmont Manufacturing produces metal products with the
following standard quantity and cost information:
Direct Material
Aluminum
4 sheets at $4
$ 16
Copper
3 sheets at $8
24
Direct labor
7 hours at $16
112
5 machine hours at $6
5 machine hours at $4
Variable overhead
30
Fixed overhead
20
Overhead rates were based on normal monthly capacity of 6,000 machine hours.
During November, the company produced only 850 units because of a labor strike,
which occurred during union contract negotiations. After the dispute was settled, the
company scheduled overtime to try to meet regular production levels. The following
costs were incurred in November:
Material
Aluminum
4,000 sheets purchased at $3.80; used 3,500 sheets
Copper
3,000 sheets purchased at $8.40; used 2,600 sheets
Direct Labor
Regular time
5,200 hours at $16 (pre-contract settlement)
Regular time
900 hours at $17 (post-contract settlement)
Variable Overhead
$23,300 (based on 4,175 machine hours)
Fixed Overhead
$18,850 (based on 4,175 machine hours)

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