Question Content Area Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Santiago Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows: Line Item Description Standard Costs Actual Costs Direct materials 231,000 lbs. at $5.50 per lb. 228,700 lbs. at $5.30 per lb. Direct labor 17,500 hrs. at $16.20 per hr. 17,900 hrs. at $16.40 per hr. Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 18,260 direct labor hrs.:   Factory overhead    Variable cost, $4.30 $74,500 variable cost Factory overhead    Fixed cost, $6.80 $124,168 fixed cost Each unit requires 0.25 hour of direct labor. Required: a.  Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using…

Problem 1 Marietta co. adopted a standard cost system several years ago. The standard costs for the prime costs of its single product follow: Material:              10 kg @ P4.50/kg P45.00 Labor:                   6 hours @ P8.50/hr P51.00   The following operating data were taken from the records for November: Units completed                              5,800 units Budgeted output                             6,000 units Materials purchased                       60,000 kg Total actual labor costs                  P306,600 Actual hours of labor                      36,500 hours Material usage variance                P2,250 unfavorable Total material variance                  P450 unfavorable   Required: Compute for the following: Actual cost paid per kilogram Labor efficiency variance

The standard costs and actual costs for direct materials for the manufacture of 2,800 actual units of product are Standard Costs Direct materials (per completed unit) 1,040 kilograms @$8.82 Actual Costs Direct materials 2,800 kilograms @ $8.40 Round your final answer to the nearest dollar. The amount of direct materials price variance is a.$437 unfavorable b.$1,176 unfavorable c.$1,176 favorable d.$437 favorable

Question # 1   Standard and the actual costs for direct materials and direct labor are given as under: Standard costs Direct materials​  8,000 units at total direct material costs Rs. 40,000 Direct labor:​  7,000 hours at Rs. 6 per hour Actual costs Direct materials​  8,500 units at Rs. 4.5 per unit Direct labor:​  6,500 hours at Rs. 6.25 per hour   Required a. Material Price Variance and Material Quantity Variance b. Labor Rate Variance and Labor Efficiency Variance

Problem 8 Material and Labor Variance Journal Entries Clyette Corporation uses a standard cost system and has the following standard costs for direct materials and direct labor. Direct materials: Direct labor 2.5 meters @ P14 per meter 1.6 hours @ P8 per hour P35.00 P12.80 During the month of February, 15,000 units were produced. The costs related to the production of the product were as follows: • 50,000 meters of materials were purchased at a cost of P13.80 per meter. 40,000 meters of materials were used. 25,000 direct labor hours were used at a cost of P8.60 per hour. Required: Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.

Q.No.2     The standard and actual cost data of M/s. ABC Company are as follows:              Standard Raw Material (DM) is 5000 units @ Rs. 10 while Actual 4900 units @ Rs. 8 Standard Direct Labor (DL) is 10000 hours @ Rs. 4 while Actual 12000 Hours @ Rs. 5 Standard Factory Overhead (FOH) is 50% of Direct Labor while Actual FOH Rs. 15000 Required:                                A) Calculate; Material Price Variance and Material Quantity Variance Labor rate variance and Labor time variance Overhead Variance B) Give journal entries to record the above information and close the variance accounts.

Variance Problem Standard Quantity Standard Cost Standard price $1.75 per hr $11.50 per hr $5.00 per hr per unit $7.00 $13.80 $6.00 per unit Direct Materials Direct Labor Variable Overhead 4 1.2 1.2 Manufacturing overhead is applied using direct labor hours as the base. During the month of July, XYZ company had the following information available about production: a. 9,000 units were produced b. 37,000 lbs of raw materials were purchased at a cost of $62,900 c. There was no beginning inventory and no ending iInventory of raw materials d. 10,500 hours of direct labor were used during the month at a cost of $119,175 e. Variable overhead cost in July totaled $57,750 Compute the following and verify the total variance for each component of product cost: 1. Material price variance, Material quantity variance, and Total material variance 2. Labor rate variance, Labor efficiency variance, and Total labor variance 3. Variable Overhead spending variance, Variable Overhead efficiency variance,…

QUESTION 4 G. Company has a material standard of 1.1 pound per unit of output. Each pound has a standard price of $25 per pound. During July, G Company paid $118,800 for 5,100 pounds, which they used to produce 4,900 units. What is the direct materials efficiency variance? O $7,250 favorable O $5,000 favorable O $7,250 unfavorable O $5,000 unfavorable

Question 2 The following report has been produced for the production department for the ABC Company for the month of June 2022: Actual Вudget 10,000 Variance Volume (units) 12,800 2,800 (F) Direct materials 105,000 132,000 5,800 27,000(A) Other materials 4,700 1,100 (A) Direct labour 135,000 145,000 10,000(A) Production overheads 96,000 105,600 9,600(A) Head office recharges 26,000 32,000 6,000 (A) Total 366,700 420,400 53,700(A) • Direct materials and other materials are variable costs. • Direct labour includes fixed salary costs of £110,000 the balance is variable. The production overhead includes a variable cost that is constant at all volume levels, and a stepped fixed cost which changes when the volume level exceeds 11,000 units. • A further analysis of the production overheads is shown below: Volume (units) 8,000 10,000 12,000 Costs (£) £91,200 £96,000 £115,800 Required a. Compute budgeted rates for • Direct materials Other materials Variable direct labor cost b. Using high-low…