The labor flexible budget/spending variance amounts to P.Indicate in your solution sheet whether it is FAVORABLE or UNFAVORABLEFor uniformity of answers, if the variance is FAVORABLE encode a minus signbefore the numerical answer. Do not place spaces. Variance Performance AnalysisCryolab Inc makes and sells a lawn fertilizer called Hypergro. The company hasdeveloped standard costs for one bag of Hypergro as follows:StandardStandardStandard Cost perQuantity/HoursPrice/RateBagDirect Material25 poundsP 0.75P18.75Direct Labor0.25 hoursP69.00P17.30Variable overhead0.25 hoursP24.00P 6.00TotalP42.05The company had no beginning inventories of any kind on January 1. Variableoverhead is applied to production on the basis of standard direct labor hours.During January, the following activity was recorded by the company:Production of Fastgro: 23,000 bags• Direct materials purchased: 585,000 pounds at a cost of P436,250• Direct labor worked: 5,800 hours at a cost of P397,300Variable overhead incurred: P140,650Inventory of direct materials on January 31: 8,000 poundsCompute the variances and indicate whether it is FAVORABLE (F) orUNFAVORABLE (U) in your solution sheet.

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Description: The labor flexible budget/spending variance amounts to P.Indicate in your solution sheet whether it is FAVORABLE or UNFAVORABLEFor uniformity of answers, if the variance is FAVORABLE encode a minus signbefore the numerical answer. Do not place space

Flexible budget is that budget which changes with change in activity level. Labour flexible budget…

Business

Accounting

The labor flexible budget/spending variance amounts to P Indicate in your solution sheet whether it is FAVORABLE or UNFAVORABLE For uniformity of answers, if the variance is FAVORABLE encode a minus sign before the numerical answer. Do not place spaces.

The labor flexible budget/spending variance amounts to P Indicate in your solution sheet whether it is FAVORABLE or UNFAVORABLE For uniformity of answers, if the variance is FAVORABLE encode a minus sign before the numerical answer. Do not place spaces.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5MC: This variance is the difference involving spending less, or using less than the standard amount. A....

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Similar questions

When is the direct labor time variance unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
The budget variance for variable production costs is broken down into quantity and price variances. Explain why the quantity variance is more useful for control purposes than the price variance.
The variable overhead rate variance is caused by the sum between which of the following? A. actual and standard allocation base B. actual and standard overhead rates C. actual and budgeted units D. actual units and actual overhead rates
A flexible budget______. A. predicts estimated revenues and costs at varying levels of production B. gives actual figures for selling price C. gives actual figures for variable and fixed overhead D. is not used in overhead variance calculations
The variable overhead efficiency variance is caused by the difference between which of the following? A. actual and budgeted units B. actual and standard allocation base C. actual and standard overhead rates D. actual units and actual overhead rates
When is the labor rate variance unfavorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
Computing labor variances Fill in the missing figures for each of the following independent cases: (Round all rates to the nearest cent and all totals to the nearest dollar.)
When is the direct labor time variance favorable? A. when the actual quantity used is greater than the standard quantity B. when the actual quantity used is less than the standard quantity C. when the actual price paid is greater than the standard price D. when the actual price is less than the standard price
In comparing actual sales revenue to flexible budget sales revenue, would it be possible to have a favorable variance and still not have met revenue expectations?
Performance Report for Variable Variances Humo Company provided the following information: Required: Prepare a performance report that shows the variances for each variable overhead item (inspection and power).
(Appendix 10A) Which of the following items describes practices surrounding the recording of variances? a. All inventories are typically carried at standard. b. Unfavorable variances appear as debits. c. Favorable variances appear as credits. d. Immaterial variances are typically closed to Cost of Goods Sold. e. All of these.
What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor.