Question
1.The following data pertain to operations concerning the product for the last month: Actual materials purchased.......................... 4,800 grams Actual cost of materials purchased ............... $86,880
1.The following data pertain to operations concerning the product for the last month:
Actual materials purchased.......................... 4,800 grams
Actual cost of materials purchased ............... $86,880
Actual materials used in production ............. 4,200 grams
Actual output ................................................ 21,080 units
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
2.The following direct labor standards have been established for product N30A:
Standard direct labor-hours ................ 3.3 hours per unit of N30A
Standard direct labor wage rate .......... $10.50 per hour
The following data pertain to the most recent month's operations during which 400
Units of product N30A were made:
Actual direct labor-hours worked........ 1,100
Actual direct labor wages paid ............ $11,385
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, including the
direct labor variances.
3.The following labor standards have been established for a particular product:
Standard labor hours per unit of output ..... 3.2 hours
Standard labor rate ..................................... $19.10 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked ......... 5,500 hours
Actual total labor cost ........ $105,050
Actual output ..................... 1,900 units
Required:
a. What is the labor rate variance for the month?
b. What is the labor efficiency variance for the month?
4.The following standards for variable manufacturing overhead have been established for a company that makes only one product:
Standard hours per unit of output.............. 0.6 hours
Standard variable overhead rate ................ $17.55 per hour
The following data pertain to operations for the last month:
Actual hours ................................................ 6,200 hours
Actual total variable overhead cost ............. $110,670
Actual output............................................... 10,200 units
Required:
a. What is the variable overhead spending variance for the month?
b. What is the variable overhead efficiency variance for the month?
5.Shawl Corporation's variable manufacturing overhead is applied on the basis of direct labor-hours. The standard cost card for product F02E specifies 5.5 direct labor-hours per unit of F02E. The standard variable manufacturing overhead rate is $6.80 per direct labor-hour. During the most recent month, 1,560 units of product F02E were made and 8,700 direct labor-hours were worked.
The actual variable manufacturing overhead incurred was $52,635.
Required:
a. What was the variable overhead spending variance for the month?
b. What was the variable overhead efficiency variance for the month?
6.AgereLtd sales three products in the Dembel City centre. The Company Budgeted to sell 25,000 units. The budgeted 25,000 units represent 50% market share. The details for the budgeted and actual data for the year 1996 fiscal year are as follows:
Budgeted Data
Actual Data
Product
Selling Price per Unit
Quantity
Sales Mix
Total Revenue
Selling Price per Unit
Unit Volume
Sales Mix
Total Revenue
A
60
5000
10%
300,000
50
9000
15%
450,000
B
100
15000
30%
1,500,000
125
24000
40%
3,000,000
C
75
30000
60%
2,250,000
75
27000
45%
2,025,000
50,000
4,050,000
60,000
5,475,000
Required
A.Calculate Static-budget variance.
B.Compute Flexible-budget variance.
C.Compute Sales-volume variance.
D.Compute Sales-mix variance.
E.Compute Sales-quantity variance.
F.Compute Market share and market size variance.
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