Your Company’s cost formula for its wages and salaries is $2,500 per month plus $475 per unit sold. For the month of May, the company planned for activity of 120 units, but the actual level of activity was 115 units. The actual wages and salaries for the month was $56,850. What is the spending variance for wages and salaries in May?     $2,650 F                 $  275 F     $  275 U     $2,650 U

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: Mom’s Apple Pie Company uses a standard cost system. The standard direct labor time for each pie is…

A: solution Labor efficiency variance  = (standard hours allowed for production – actual hours taken) ×…

Q: A company manufactures t-shirts. In January, the budgeted direct labor hours are 1,960, and the…

A: Solution: Budgeted price per T-shirt = $84,000 / 4200 = $20 Per T-shirt Actual price per T-shirt =…

Q: Ernest Company makes and sells a single product. Last period the company's labor rate variance was…

A: Favorable variance means Actual labor rate is lesser than the standard labor rate.   Actual labor…

Q: ABC Company's production budget for October is based on 500 units. Standard unit cost for raw…

A: Direct materials usage variance =  (Standard quantity * Standard price) - (Actual quantity *…

Q: Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During…

A: 1. October: Actual Cost           Standard Cost AH x AR   AH x SR   SH x SR 11500 x 15.7…

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

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

Q: The standard cost of Product DD is 4 hours of labor at a rate of $12.00 per hour. During the month…

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

Q: Wholesome Burger, Inc. budgeted 25,000 direct labor hours for producing 100,000 units. The standard…

A: Labor rate Variance: The labor rate variance measures the difference between the actual and expected…

Q: Mom’s Apple Pie Company uses a standard cost system. The standard direct labor time for each pie is…

A: Direct labor rate variance = (Actual rate - Standard rate)*Actual hours

Q: True or False. If the budgeted factory overhead cost is $460,000, the budgeted direct labor hours is…

A: Factory overhead rate per hour = Budgeted factory overhead cost/Budgeted direct labor hour

Q: Maron manufactures a single product and has a JIT policy that ending inventory must equal 5% of the…

A: Overheads are the expenses incurred during manufacturing of an product, in which overheads are of…

Q: Sterling Company's standard labor cost per unit of output is $20.00 (2 hours x $10.00 per hour).…

A: Working Notes: 1. Standard labor cost = Actual output * Standard labor cost per unit of output =…

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: A company developed the following per-unit standards for its product: 2 pounds of direct materials…

A: Direct material price variance: It refers to a difference between the actual price that is paid by…

Q: Soloman Enterprises recently used 24,000 labor hours to produce 8,600 completed units. According to…

A: Labor Rate Variance Labor rate variance is an accounting tool. It helps in evaluating the difference…

Q: The standards for product V28 call for 7.5 pounds of a raw material that costs $18.10 per pound.…

A: Given,

Q: Bobbi Clothing manufactures clothing. Information about a production week is as follows: Standard…

A: Time variance (Actual hours worked - standard hours) * standard rate per hour

Q: ​Using the following information, prepare a factory overhead flexible budget for Jacob Company where…

A: Total Factory Cost at 100% capacity $206,500   Given Less: Fixed Cost -$75,000   Given Variable…

Q: Madrid Co. has a direct labor standard of 4 hours per unit of output. Each employee has a standard…

A: Identify the correct option. Working note: Calculate the actual direct labor rate per hour.

Q: Great Inc. manufactures a single product. The following data relates to January 2018: Actual 3,200…

A: Fixed overhead application rate = Budgeted Fixed overhead costs / Budgeted machine hours =…

Q: The standard direct material cost per unit for a product is calculated as follows: 10.5 liters at…

A: The variances are difference between actual usage or cost and standard usage or cost. The variances…

Q: The standards for product V28 call for 9.1 pounds of a raw material that costs $18.00 per pound.…

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

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: 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: Pittman Framing's cost formula for its supplies cost is $1110 per month plus $11 per frame. For the…

A: Solution:- Calculation of spending variance for supplies cost in November as follows under:-

Q: Whitman has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage…

A: Variance analysis: It is the technique in budgeting that allows for analysis of the variances…

Q: 1) The standards for a product call for 2.5 pounds of a raw material that costs $6.10 per pound.…

A: Variance analysis is one of the important analysis being made for decision making. Material price…

Q: Pittman Framing's cost formula for its supplies cost is $1110 per month plus $11 per frame. For the…

A: The following formula used to calculate spending variance as follows:-  Spending variiance = Actual…

Q: 9. Martin Company uses 625 units of a part each year. The cost of placing one order is $8; the cost…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Whitman has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage…

A: Variances are calculated in order to compare the standard set by the company and the actual…

Q: Chhom Corporation makes a product whose direct labor standards are 0.9 hours per unit and $21 per…

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

Q: ubberly Corporation's cost formula for its manufacturing overhead is $31,300 per month plus $52 per…

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

Q: 1. Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month plus $10…

A: Spending variance for manufacturing overhead = Total standard manufacturing overhead - Total Actual…

Q: Pittman Framing's cost formula for its supplies cost is $1,220 per month plus $11 per frame. For the…

A: Budgeted cost for 612 frames = (612 x $11) + $1,220 = $7,952   Actual cost for 612 frames = $7,650

Q: Your Company’s cost formula for its wages and salaries is $2,500 per month plus $475 per unit sold.…

A: Spending variance is the difference between budgeted wages & salaries expense and the actual…

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: Mom’s Apple Pie Company uses a standard cost system. The standard direct labor time for each pie…

A: Direct labor efficiency variance = (Actual hours worked - Standard hours allowed)*Standard rate per…

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

A: Variance analysis is the analysis in which deviations are determined by comparing the actual…

Q: MajorNet Systems has budgeted three hours of direct labor per connector, at a standard cost of $17…

A: Direct Labor Efficiency Variance:   Direct labor efficiency variance is the difference between the…

Q: Victoria Manufacturing Victoria Manufacturing produced 5,250 units in October.  The following is…

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

Q: Last month a company budgeted to sell 8,000 units at a price of $12.50 per unit. Actual sales last…

A: We have the following information: Company budgeted to sell 8,000 units at a price of $12.50 per…

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: Whitman has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage…

A: Identify the correct option. Working note: Calculate the standard labor hours.

Q: Javon Company set standards of 2 hours of direct labor per unit at a rate of $16.30 per hour. During…

A: Every business entities set the standard in advance and the actual performance is measured keeping…

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…

Q: budgeted fixed factory overhead cost is P50,000 per month plus a variable factory overhead rate of…

A: Formula: Standard direct labor = Labor hours X labor rate

Q: Botana Company constructed the following formula for its monthly utility cost. Total utility cost =…

A: Computation of Fixed utility and Variable utility is as follows: Fixed utility =$1200Variable…

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.