1
Material price variance
The difference between the actual amount that a company spends on direct materials and the standard amount that was budgeted to be spent is material price variance.
Material quantity variance
The difference between actual amount of materials that a company uses in production process and amount that was budgeted to be used is material quantity variance.
To compute:Favorable or unfavorable material price and quantity variance.
2
Labor rate variance
The difference between the actual amount paid to workers by a company and the amount that was budgeted to be paid is labor rate variance.
Labor efficiency variance
The difference between the value of actual labor hours used in production and the value of hours that were budgeted to be used is labor efficiency variance.
To compute: Favorable or unfavorable labor rate and efficiency variances.
3
Variable overhead rate variance
The difference between actual amount of variable manufacturing overheads and amount that was budgeted for variable overheads is variable overhead rate variance.
Variable overhead efficiency variance
The difference between the value of actual variable overhead based on actual time taken to produce a product and standard variable overhead based on time that was expected to be used is variable overhead efficiency variance.
To compute: Favorable or unfavorable variable overhead rate and efficiency variances.
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Chapter 9 Solutions
INTRO TO MANAGERIAL ACCT-CONNECT ACCESS
- Please show your computations through excel. Using FIFO, compute for the equivalent unit for finishing department.arrow_forwardPlease show your computations through excel. c. Using AVERAGE method, compute for the equivalent unit for casting department.arrow_forwardCan you help me with the problem attached? I have included the blank production reports attached to help with the question. Put together a production report and answer questions a., b., c., and d. Thank you.arrow_forward
- Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Cost Item 1. Purchase of raw materials 2. Advertising 3. Salary of research scientists 4. Delivery expenses 5. Reengineering of product assembly process 6. Replacement labor expense for warranty repairs 7. Manufacturing supplies 8. Sales salaries 9. Purchase of CAD (computer-aided design) software 10. Salary of website manager Business Functionarrow_forwardInstructions: Using formulas/functions wherever possible, complete the following on the Input Tab. 1. Prepare a cost of production report for the Cutting Department assuming a FIFO method. 2. Using the data developed from (1), prepare a cost of production report for the Boxing Department assuming a FIFO method.arrow_forwardMake a system for recording the cost of raw materials using the complete Perpetual and Periodic method. note: excel formulas for each workarrow_forward
- Please show your computations through excel. 2. Using FIFO, compute for the total cost of units transferred out from Finishing Department.arrow_forwardFIFO; Production ReportRefer to the information for Aztec Inc. on the previous page.Required:Prepare a production report.arrow_forwardPlease refer the problem from the attached images below. Required: Compute the units of equivalent production for materials and conversion costs. Compute the cost of ending work in process inventory. Prepare a cost of production report.arrow_forward
- What kind of layout is this bakery using? A) flexible B) product cellular D) process flexible product cellular processarrow_forwardComputing direct materials used Tuscany, Inc. has compiled the following data: Compute the amount of direct materials used.arrow_forwardPrepare the production report. (round your numbers)arrow_forward
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage LearningPrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
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