Management should focus its sales and production efforts on the product or products that will provide a. the lowest product costs b. the lowest direct labor hours c. the highest sales revenue d. the maximum contribution margin

Q: Japan Company produces lamps that require 2 standard hours per unit at a standard hourly rate of…

A: Direct labor cost variance =  Direct labor rate variance + Direct labor time variance

Q: Japan Company produces lamps that require 2 standard hours per unit at a standard hourly rate of…

A: Variance analysis is an important technique which is used by cost accountants to compare the…

Q: Williams Corporation reports the following direct labor information for November: Standard rate 2$…

A: Standard Costing: Standard costing involves setting-up predetermined cost or expenses estimates.…

Q: Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price…

A: Direct material variance means the difference between the standard cost of direct material &…

Q: Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: tity, and the labor rate and efficiency variances. Enter all amounts as positive numbers. Material…

A: Direct Materials refers to the raw materials used to manufacture a product. Normally all the direct…

Q: Williams Corporation reports the following direct labor information for November: Standard rate…

A: Variance is considered as the difference between budgeted value and actual results. The management…

Q: A company uses standard marginal costing. Last month, when all sales were at the standard selling…

A: Calculation of Actual Contribution: Standard Contribution $85,600 Variable cost variance…

Q: The direct labor time variance is

A: Answer:   $7,800 unfavorable

Q: Enter a favorable variance as a negative number. Round your answer to the nearest dollar. $…

A: Given information is: Titus Company produced 3,200 units of a product that required 3.243 standard…

Q: CT Co uses a standard absorption costing system and manufactures and sells a single product called…

A: We have the following information: Variable Cost: $12 Fixed Cost: $4 Standard Profit: $6 Standard…

Q: Brice Corporation shows the following overhead information for the current period. Actual overhead…

A: Variable overhead price variance  =  Actual overhead -  ( Actual hours x Standard overhead rate )…

Q: Acme Inc. has the following information available: Actual price paid for material $0.90 Standard…

A: Material Price Variance (MPV) MPV = (SP - AP) x Actual Quantity. Where,  SP = Standard Price = $1 AP…

Q: Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $20.40 per…

A: a. Rate variance    (Standard Rate - Actual Rate)*Actual Hour  b. Time variance    (Standard Hour…

Q: Assume the following information for one of a company's variable expenses: • The actual amount of…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: A company has the following information for one of its products:   Standard per item (£) Actual…

A: Sales volume variance: It implies to a change or variation in the budgeted quantity of product…

Q: Bellingham Company produces a product that requires 2 standard hours per unit at a standard hourly…

A: Labor cost variance: Labor cost variance is the difference between actual labor cost and standard…

Q: The following standards for variable overhead have been established for a company that makes only…

A: The term "variable overhead efficiency variance" refers to both the impact of the discrepancy…

Q: The following data relate to direct labor costs for the current period: Standard costs 7,300 hours…

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

Q: Assume that a company's planned level of activity is 1,000 hours and its actual level of activity is…

A: Revenue for higher level of activity is likely to be higher because of the tendency of getting more…

Q: Japan Company produces lamps that require 3 standard hours per unit at an hourly rate of $11.30 per…

A: Introduction: Variance analysis is the quantitative examination of the differences between actual…

Q: ippi Company produces lamps that require 2.25 standard hours per unit at a standard hourly rate of…

A: Standard cost means the cost which the company is expecting to be incurred on the basis of estimate…

Q: Fixed overhead is budgeted at $24,000. The company actually produced 4,500 widgets in 10,000 direct…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The following data relate to direct labor costs for the current period: Standard costs 6,900…

A: Formula:

Q: Japan Company produces lamps that require 3 standard hours per unit at an hourly rate of $11.60 per…

A: Formulas: Direct Labor rate variance = (Standard Rate - Actual Rate)*Actual Hour Direct Labor…

Q: Venneman Company produces a product that requires 4 standard hours per unit at a standard hourly…

A: Labor Rate Variance = (Standard Rate - Actual Rate) * Actual Hours   Labor Efficiency Variance =…

Q: Japan Company produces lamps that require 2 standard hours per unit at an hourly rate of $16.70 per…

A:

Q: Venneman Company produces a product that requires 2 standard hours per unit at a standard hourly…

A: Solution a: Direct labor rate variance = (SR - AR) * AH = ($15 - $14.70)* 8900 =$2,670 F

Q: A manager prepared the following table by which to analyze labor costs for the month: Actual hours…

A: Total labor variance = Standard hours at Standard rate - Actual hours at Actual rate Actual hours at…

Q: Flapjack Corporation had 7,784 actual direct labor hours at an actual rate of $12.34 per hour.…

A: Direct Labor Time Variance: The outcome will be zero if there is no difference between the actual…

Q: e following information relates to product A:       Quantity Unit Price Cost Per Unit Material…

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

Q: Beverly Company has determined a standard variable overhead rate of $3.40 per direct labor hour and…

A:

Q: The following data relate to direct labor costs for the current period: Standard costs 7,300 hours…

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

Q: Beverly Company has determined a standard variable overhead rate of $4.00 per direct labor hour and…

A: Applied overhead = No. of units produced x labor hour per unit  x variable overhead rate = 3,500…

Q: Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price…

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

Q: Acme Inc. has the following information available: Actual price paid for material $1.00 Standard…

A: The variance is the difference between standard and actual costs incurred.

Q: variable factory overhead controllable variance is

A: Variable factory overhead variance = Standard hours required for actual production * Standard rate…

Q: Williams Corporation reports the following direct labor information for November:…

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: he following labor standards have been established for a particular product:           Standard…

A: Labor rate variance: It is the difference of the actual rate and budgeted rate to be multiplied by…

Q: The following information relates to product A:       Quantity Unit Price Cost Per Unit…

A:

Q: The managerial accountant at Fast and Mean Manufacturing reported that the organization contains an…

A: Variable cost per machine hour = (Highest activity cost - Lowest activity cost) / (Highest activity…

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: Acme Inc. has the following information available: Actual price paid for material $1.00 Standard…

A: Standard cost means the cost which the company is expecting to be incurred on the basis of estimate…

Q: Tippi Company produces lamps that require 2.25 standard hours per unit at an hourly rate of $15.00…

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

Q: The following data relate to direct labor costs for the current period: Standard costs 6,000 hours…

A: Direct labor rate variance is the difference between actual cost at actual hours and standard cost…

Q: Titus Company produced 6,800 units of a product that required 3 standard hours per unit. The…

A: Fixed overhead volume variance = Absorbed fixed overhead - Budgeted fixed overhead If the absorbed…

Q: Japan Company produces lamps that require 3 standard hours per unit at a standard hourly rate of…

A: Direct labor rate variance = (Actual rate - Standard rate)*Actual hours. If the actual rate is more…

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

A:

Q: The following information is available for a manufacturer. Compute the direct labor rate and…

A: Direct Labour rate variance = (Standard labour rate - Actual rate variance) * Actual labour hours…

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.