Labor Rate and Efficiency Variances Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.026 hour. During the month of April, 1,000,000 bottles were produced using 25,60 labor hours @ $17.00. The standard wage rate is $15.00 per hour. Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor rate variance Labor efficiency variance

Q: Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hour.…

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

Q: Materials Variances Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard…

A: Material price variance = (standard price - actual price) * actual quantity   Material usage…

Q: Materials and Labor Variances At the beginning of the year, Craig Company had the following standard…

A: Direct labor variances: The difference between the actual labor cost in the production and the…

Q: Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce…

A: Standard costing: Under this costing setting of the predetermined estimate of costs and the…

Q: Calculating materials and labor variances Matthews Fender, which uses a standard cost system,…

A: Working notes: Particulars Actual  Standard Manufactured  20000 20000 Direct materials…

Q: Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.60 per hr. 1,120 Light chocolate 15.40…

A: As per the we guidelines we can provide the answer for part 1.  If need answer for remaining part…

Q: Direct materials variances Bellingham Company produces a product that requires 2.5 standard pounds…

A: The variances refers to the difference between the budgeted amount and the actual amount. It may be…

Q: Income Statement with Variances Encinas Company produces a product that requires 6 standard pounds…

A: The question is based on the concept of cost accounting.

Q: Encinas Company produces a product that requires 6 standard pounds per unit. The standard price is…

A: Direct material price variance = (Actual price - Standard price) x Actual Quantity= ($2 - $1.75) x…

Q: Overhead Variances At the beginning of the year, Lopez Company had the following standard cost…

A: Variance occurs whenever there is difference in the usage of materials or time taken or the actual…

Q: Labor Rate and Efficiency Variances Tico Inc. produces plastic bottles. Each bottle has a standard…

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

Q: Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce…

A: working for 1 Standard labor hours for Budgeted production will be =   Formula = Budgeted production…

Q: Income Statement with Variances Dvorak Company produces a product that requires 5 standard pounds…

A: Income statement through gross profit for Dvorak Company for the month ended July 31:

Q: Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system…

A: given The budget is based on an expected annual output of 123,000 units requiring 492,000 direct…

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: Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled…

A: Answer: (a) Direct labor rate variance             = Actual hours x ( Actual rate (-) Standard…

Q: Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled…

A: Direct labor cost variance is the difference between the standard cost for actual production and the…

Q: Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data…

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

Q: Direct Materials Variances Silicone Engine Inc. produces wrist-worn tablet computers. The company…

A: Solution;- a)Calculation of Direct material Price variance as follows:- =

Q: Overhead Variances At the beginning of the year, Lopez Company had the following standard cost…

A: Standard labor hours  = Standard labor hours per unit x Actual units produced   Applied Fixed…

Q: Labor Variances Verde Company produces wheels for bicycles. During the year, 659,000 wheels were…

A:

Q: ncome Statement with Variances Bellingham Company produces a product that requires 2.5 standard…

A: Standard Quantity=2.5*15000*3.75=1,40,625 Standard Labor=4*15000*20=12,00,000 Standard Variable…

Q: Direct Labor Variances La Barte Company manufactures commuter bicycles from recycled materials. The…

A: The variance is the difference between standard and the actual output of the production.

Q: Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current…

A: Variance is the difference in the value of budgeted cost\quantity\price and the actual…

Q: Variance Analysis Problem Avatar, Inc. has prepared the following standard cost sheet for one unit…

A: Variances signifies the variation between the budgeted or estimated costs and the actual costs.

Q: Total Labor Variance Tico Inc. produces plastic bottles. Each bottle has a standard labor…

A: Total Labor Variance = Actual Labor Cost  - Standard Labor Cost

Q: Direct Labor Variances La Barte Company manufactures commuter bicycles from recycled materials. The…

A: Direct labor variance: Labor cost variance is the difference between the standard labor cost for the…

Q: Predetermined Overhead Rate; Overhead Variances Norwall Company’s budgeted variable manufacturing…

A: 1. Compute the predetermined overhead rate and break it down into variable and fixe elements.…

Q: Overhead variances, ethics. Hartmann Company uses standard costing. The company has two…

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

Q: Overhead variances, ethics. Carpenter Company uses standard costing. The company has a manufacturing…

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

Q: Medicox a producer of medical emergency kits has purchased (at a cost of P10,200) and used 2,400…

A: Purchase cost of materials=P10,200 Materials used in May month=2,400 pounds Production in month of…

Q: Calculating materials and labor variances Matthews Fender, which uses a standard cost system,…

A: Working notes: Particulars Actual  Standard Manufactured  20000 20000 Direct…

Q: Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled…

A: Formulas:

Q: Calculating materials variances Martin, Inc. is a manufacturer of lead crystal glasses. The standard…

A: Material Cost Variance and Material Efficiency Variance: The material cost variance, also called as…

Q: Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data…

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

Q: Overhead Variances. Two And Three Variance Analyses Oerstman, Inc. uses a standard costing system…

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

Q: What is the direct materials (a) price variance, (b) quantity variance, and (c) cost variance? Round…

A: Direct Material Price Variance :— It is the difference between the actual quantity of direct…

Q: Total Labor VarianceRefer to the information for Tico Inc. on the previous page.Required:Calculate…

A: Calculation of Total labor variance Total Labor Variance = Standard labor cost allowed to produce…

Q: Calculation of materials and labor variances Fritz Corp. manufactures and sells a single product.…

A: In case where standard cost is higher than actual cost then it is favorable variance. Otherwise it…

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.