he following information is for the standard and actual costs for Happy Corporation: Enter favorable variances as negative numbers. Standard Costs: Budgeted units of production - 16,000 [80% (or normal) capacity] Standard labor hours per unit - 4 Standard labor rate - $26 per hour Standard material per unit - 8 lb. Standard material cost - $12 per pound Standard variable overhead rate - $15 per labor hour Budgeted fixed overhead - $640,000 Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity. Actual Cost: Actual production - 16,500 units Actual material purchased and used - 130,000 pounds Actual total material cost - $1,600,000 Actual labor - 65,000 hours Actual total labor costs - $1,700,000 Actual variable overhead - $1,000,000 Actual fixed overhead - $640,000 a. Determine the following: Quantity variance: $fill in the blank 1 Price variance: $fill in the blank 3 Total direct material cost variance: $fill in the blank 5 b. Determine the following: Time variance: $fill in the blank 7 Rate variance: $fill in the blank 9 Total direct labor cost variance: $fill in the blank 11 c. Determine the following: Volume variance: $fill in the blank 13 Controllable variance: $fill in the blank 15 Total factory overhead cost variance: $fill in the blank 17
he following information is for the standard and actual costs for Happy Corporation: Enter favorable variances as negative numbers. Standard Costs: Budgeted units of production - 16,000 [80% (or normal) capacity] Standard labor hours per unit - 4 Standard labor rate - $26 per hour Standard material per unit - 8 lb. Standard material cost - $12 per pound Standard variable overhead rate - $15 per labor hour Budgeted fixed overhead - $640,000 Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity. Actual Cost: Actual production - 16,500 units Actual material purchased and used - 130,000 pounds Actual total material cost - $1,600,000 Actual labor - 65,000 hours Actual total labor costs - $1,700,000 Actual variable overhead - $1,000,000 Actual fixed overhead - $640,000 a. Determine the following: Quantity variance: $fill in the blank 1 Price variance: $fill in the blank 3 Total direct material cost variance: $fill in the blank 5 b. Determine the following: Time variance: $fill in the blank 7 Rate variance: $fill in the blank 9 Total direct labor cost variance: $fill in the blank 11 c. Determine the following: Volume variance: $fill in the blank 13 Controllable variance: $fill in the blank 15 Total factory overhead cost variance: $fill in the blank 17
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 1E: In all of the exercises involving variances, use F and U to designate favorable and unfavorable...
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The following information is for the standard and actual costs for Happy Corporation:
Enter favorable variances as negative numbers.
Budgeted units of production - 16,000 [80% (or normal) capacity] |
Standard labor hours per unit - 4 |
Standard labor rate - $26 per hour |
Standard material per unit - 8 lb. |
Standard material cost - $12 per pound |
Standard variable overhead rate - $15 per labor hour |
Budgeted fixed overhead - $640,000 |
Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity. |
Actual Cost: |
Actual production - 16,500 units |
Actual material purchased and used - 130,000 pounds |
Actual total material cost - $1,600,000 |
Actual labor - 65,000 hours |
Actual total labor costs - $1,700,000 |
Actual variable overhead - $1,000,000 |
Actual fixed overhead - $640,000 |
a. Determine the following:
Quantity variance: | $fill in the blank 1 | |
Price variance: | $fill in the blank 3 | |
Total direct material cost variance: | $fill in the blank 5 |
b. Determine the following:
Time variance: | $fill in the blank 7 | |
Rate variance: | $fill in the blank 9 | |
Total direct labor cost variance: | $fill in the blank 11 |
c. Determine the following:
Volume variance: | $fill in the blank 13 | |
Controllable variance: | $fill in the blank 15 | |
Total |
$fill in the blank 17 |
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Hello, I have a follow-up question. For parts a, b, and c are each of the calculations favorable or unfavorable?
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