Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,640 per month plus $47 per boat. For the month of April, the company planned for activity of 60 boats, but the actual level of activity was 14 boats. The actual cleaning equipment and supplies for the month was $3,420. The activity variance for cleaning equipment and supplies in April would be closest to:

Q: Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483…

A: Total Snow Days = 24 Cost per snow day= $483 Total cost for snow days= $11592 Vehicle Operating…

Q: Zanny Electronics Corporation uses a standard cost system for the production of its water ski…

A: Standard rate = $7.80 Actual rate = $48,708 / 6600 DLHs = $7.38

Q: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450…

A: The direct labor cost variance represents the difference between the actual labor cost incurred by…

Q: Bluemel Air uses two measures of activity, flights and passengers, in the cost formulas in its…

A: A budget is a financial plan which is associated with future. It could be prepared for the…

Q: Courington Detailing's cost formula for its materials and supplies is $2,010 per month plus $6 per…

A: Standard materials and supplies  cost = $2,010 per month + (Actual no. of vehicle x $6 per vehicle)…

Q: Pretty & Beautiful Company has the following direct labor standard for its production. 6 standard…

A: Following is the Labour efficiency Variance

Q: ABC Inc.,produces metal telephone poles. In the most recent month, the company budgeted production…

A: Formula of computation of variable overhead efficiency variance is as follows: Variable overhead…

Q: Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its…

A: Please see the next step for the solution

Q: Kendra Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of…

A: Total labor variance = Actual labor cost - Standard labor cost

Q: Dure Corporation's cost formula for its selling and administrative expense is $24,500 per month plus…

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

Q: Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of…

A: The direct labor relationship for August for Sole Purpose Shoe Company is as follows:

Q: Sheridan WaterWorks manufactures snorkel gear. During the past month, Washington purchased 2,600…

A: Direct material price variance = ( Standard Price - Actual Price ) x Actual Quantity Purchased

Q: Groupe Air uses two measures of activity, flights and passengers, in the cost formulas in its…

A: Activity Variance is calculated for the difference in estimated activity and actual activity. If the…

Q: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450…

A: Labor rate variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked = ($15.75…

Q: Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the…

A: Material purchase price variance means when there is a difference between actual cost of material…

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $30,800 per month plus $62 per…

A: The activity variance for manufacturing overhead is calculated as difference between flexible budget…

Q: Bade Midwifery's cost formula for its wages and salaries is $1,230 per month plus $240 per birth.…

A: Variance analysis is an integral part of budgetary control that compares the actual performance of…

Q: Jaw Titan Company established a standard direct material cost of Php30 per finished unit for its…

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

Q: The standards for direct labor for a product are 2.5 hours at $8 per hour. Last month, 9,000 units…

A: The formula for labor efficiency variance is given below: Labor Efficiency Variance = Standard…

Q: The standard cost of labor for the David Company's product is 2 hours of labor for each unit of…

A: Labor rate variance is computed by multiplying the actual quantity with the difference of standard…

Q: Courington Detailing's cost formula for its materials and supplies is $2,420 per month plus $9 per…

A: The budget is prepared to estimate the requirements for the future.

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $31,400 per month plus $56 per…

A: The activity variance for manufacturing overhead in March would be closest to $5,600 F

Q: Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.60 units of…

A: Variances are the variations between the estimates so made for the outlays and the actual outlays.

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $32,400 per month plus $54 per…

A: Formulas; Budgeted Manufacturing Overhead = Manufacturing overhead + (Rate per Machine hours x…

Q: Bade Midwifery's cost formula for its wages and salaries is $1,280 per month plus $250 per birth.…

A: The difference between planning and flexible budget is known as activity variance.

Q: Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per…

A: Variance is an important concept in budgeting which indicates the deviations of budget prepared and…

Q: Bondi Corporation makes automotive engines. For the most recent month, budgeted production was 3,500…

A: Answer Variable overhead rate variance =Actual hours worked×(Standard overhead rate-Actual overhead…

Q: Washington WaterWorks manufactures snorkel gear. During the past month, Washington purchased 4,000…

A: Direct Material Price Variance: Direct material price variance in the difference between the…

Q: Dreary Credit Agency uses a standard cost system for the processing of its credit applications. The…

A: Calculation of Labor Efficiency Variance:  Standard rate =$15 Actual Hours = 1,920 hours Standard…

Q: The standard cost card for a product indicates that one unit of the product requires 8 kilograms of…

A: Material quantity variance is the variance between the standard material estimated and the actual…

Q: Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its…

A:

Q: The cost formula for the maintenance department of Rainbow Ltd. is $19,400 per month plus $7.70 per…

A: Given, Fixed cost = $19,400 Variable cost = $7.70 per machine hour

Q: Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.8 hours of…

A: Following formulas were used to calculate labor variances.   Labor rate variance =Actual hours x…

Q: Sherburne Snow Removals cost formula for its vehicle operating cost is $2,510 per month plus $371…

A: Concept Under the flexible budget the budget is adjusted for the variable cost while keeping the…

Q: Picozzi Snow Removal's cost formula for its vehicle operating cost is $2,060 per month plus $306 per…

A: Operating cost is the cost incurred by the company on the operations.

Q: 6,000 units. During May, Cheshire produced 5,500 units. The budgeted fixed overhead is $60,000 and…

A: (3600 hours /6000 units )*5500 units = 3300  Direct labour  hours Budgeted Fixed overhead is $60,000…

Q: The following data pertains to the month of October for ElmCo. when production was budgeted to be…

A: Direct Material Quantity Variance It's the variance which occurs due to the change in the quantity…

Q: Swifty WaterWorks manufactures snorkel gear. During the past month, Washington purchased 3,400…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: Petrus Framing's cost formula for its supplies cost is $1,790 per month plus $10 per frame. For the…

A: Supplies expense is the cost of consumables used during a fiscal quarter. This might be one of the…

Q: Dermody Snow Removal's cost formula for its vehicle operating cost is $3,060 per month plus $336 per…

A: A spending variance is the difference between the actual and the expected (or budgeted) amount of a…

Q: A company manufactures t-shirts. In January, the budgeted direct labor hours are 3,600, and the…

A: Budgeted labor rate = $28,000 / 3,600 = $7,78 Actual labor rate = $28,754 / 3,512 = $8.19

Q: Pittman Framing's cost formula for its supplies cost is $1,100 per month plus $10 per frame, For the…

A: Budgeted supplies cost = Fixed costs + Variable cost per frame x Budgeted no. of frame = $1100 +…

Q: Pittman Framing's cost formula for its supplies cost is $1,040 per month plus $14 per frame. For the…

A: Spending variance: = Actual results - Flexible budget

Q: Canniff Air uses two measures of activity, flights and passengers, In the cost formulas in Its…

A: Variable expense per flight=Number of flights×Expense=69×$2,638=$182,022

Q: Complete the following table, showing the direct labor variance relationships for August for Sole…

A: A budget variance is a periodic measure used by governments, corporations, or individuals to…

Q: During March, the company purchased direct materials at a cost of $45,210, all of which were used in…

A: 1.a Compute actual cost per foot: Actual cost per foot = Actual cost / Actual quantity Actual cost…

Q: During June, Fraser Company's material purchases amounted to 5,100 pounds at a price of $8.25 per…

A: Variances are the differences between the standard and actual costs of direct material, direct labor…

Q: Javonte Co. set standards of 3 hours of direct labor per unit of product and $15 per hour for the…

A: Given the following information: Standard direct labor hour per unit: 3 hours Standard labor rate:…

Q: Your Company’s cost formula for its wages and salaries is $2,900 per month plus $475 per unit sold.…

A: Spending variance for wages and salaries = Standard cost of wages and salaries - Actual cost of…

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.