Question 3: Calculate the variance for the given data:a) The standard mix to produce one unit of product is as follows:Material A 60 units @ $ 10 per unitMaterial B 80 units @$ 15 per unitMaterial C 100 units @ $ 20 per unitDuring the month of July, 10 units were actually produced and consumption was as follows:Material A 640 units @S 7.50 per unitMaterial B 950 units @ $ 18.00 per unitMaterial C 870 units @ $ 22.50 per unitCalculate material variances.b) Standard wage rate is Rs.3 per hour and standard time is 10 hours. But actual wage rate is Rs. 3.5per hourand actual hours used are 12 hours. Calculate Labor cost variance.

Name: Question 3: Calculate the variance for the given data:a) The standard
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Description: Question 3: Calculate the variance for the given data:a) The standard mix to produce one unit of product is as follows:Material A 60 units @ $ 10 per unitMaterial B 80 units @$ 15 per unitMaterial C 100 units @ $ 20 per unitDuring the month of July,

Variance is the difference between the standard amount and the actual amount. Variance analysis…

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Accounting

Question 3: Calculate the variance for the given data: a) The standard mix to produce one unit of product is as follows: Material A 60 units @ $ 10 per unit Material B 80 units @ $ 15 per unit Material C 100 units @ $ 20 per unit During the month of July, 10 units were actually produced and consumption was as follows: Material A 640 units @ $ 7.50 per unit Material B 950 units @ $ 18.00 per unit Material C 870 units @ $ 22.50 per unit Calculate material variances. b) Standard wage rate is Rs.3 per hour and standard time is 10 hours. But actual wage rate is Rs. 3.5per hour and actual hours used are 12 hours. Calculate Labor cost variance.

Question 3: Calculate the variance for the given data: a) The standard mix to produce one unit of product is as follows: Material A 60 units @ $ 10 per unit Material B 80 units @ $ 15 per unit Material C 100 units @ $ 20 per unit During the month of July, 10 units were actually produced and consumption was as follows: Material A 640 units @ $ 7.50 per unit Material B 950 units @ $ 18.00 per unit Material C 870 units @ $ 22.50 per unit Calculate material variances. b) Standard wage rate is Rs.3 per hour and standard time is 10 hours. But actual wage rate is Rs. 3.5per hour and actual hours used are 12 hours. Calculate Labor cost variance.

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 19P

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Variances Refer to Cornerstone Exercise 9.6. Required: 1. Calculate the variable overhead spending variance using the formula approach. (If you compute the actual variable overhead rate, carry your computations out to five significant digits and round the variance to the nearest dollar.) 2. Calculate the variable overhead efficiency variance using the formula approach. 3. Calculate the variable overhead spending variance and variable overhead efficiency variance using the three-pronged graphical approach. 4. What if 26,100 direct labor hours were actually worked in February? What impact would that have had on the variable overhead spending variance? On the variable overhead efficiency variance? Standish Company manufactures consumer products and provided the following information for the month of February: Required: 1. Calculate the fixed overhead spending variance using the formula approach. 2. Calculate the volume variance using the formula approach. 3. Calculate the fixed overhead spending variance and volume variance using the three-pronged graphical approach. 4. What if 129,600 units had actually been produced in February? What impact would that have had on the fixed overhead spending variance? On the volume variance?