a per unit per unit per unit 39 Problem B SHOW and LABEL ALL WORK! Tahoe Company has prepared the standard cost for a manufactured product based on 90,000 20 units and consists of. 21 Direct materials (0.75 pounds x $10 per pound) $7.50 per unit 22 Direct Labor (1.5 hours x $18 per hour) $27.00 93 Variable mfg overhead (applied per unit) $4.00 4 Fixed Mfg Overhead ($142,000 in total) $1.58 95 Total Standard cost per unit $40.08 During May, a total of 70200 pounds of material was purchased at $8 per pound and 64400 pounds of material were used. Tahoe Company produced 92,000 units in May with the following 96 costs: 97 Direct Labor (140760 hours x $20 per hour) $2,815,200 98 Variable Manufacturing overhead (applied perur $552,000 99 Fixed Manufacturing Overhead $137,200 100 101 Required: 102 a. Calculate the materials price and usage variances. 203 b. Calculate the labor rate and efficiency variances. 204 c. Calculate the variable overhead spending and efficiency variances. 105 d. Calculate the fixed overhead spending variance. 106 107 108 109 110 111 Homework Note: For Material and Labor STANDARD use the ACTUAL number of units produced x standard per unit (you can use either the amount per unit x standard rate of the standard cost per unit given instead..example, Direct materials standard is 0.25 pounds per unit x $8 per pound or $2.00 per UNIT. Remember, this will tell you the material standard cost is $2 per UNIT and is not the cost per pound purchased. If Variable overhead is applied based on units produced, use the standard cost provided for each unit produced. Calculate STANDARD for Variable OH using standard volume x standard cost per unit 112 113 114 115 ember, Variances must be a POSTIVE NUMBER and must have Ffor Favorable or for Unfavorable, otherwise it is not a varian 116 117 Direct Material Variances: Hint? yes Material price variance uses PURCHASES 118 Material price variance 119 Actual Cost (purchased) Flexible Budget 120 121 122 123 124 Direct material price variance 125 126 Hinta This variance is based on 127 Material quantity for usage) variance material USED for the Flex "budget. For the standard amt, 128 Flexible Budget + Standard (or budget) use the units PRODUCED x std 129 materials required per unit yes yes This variance is based on material USED for the Flex budget. For the standard art, use the units PRODUCED x std materials required per unit B 124 Direct material price variance 125 Hint? 126 127 Material quantity (or usage) variance 128 Flexible Budget Standard (or budget) 129 130 131 132 133 Direct material qty (or usage) var 134 135 Labor efficiency variance Flexible Budget Standard (or budget) 136 137 Direct Labor Variances: 138 139 Labor rate variance 140 Actual DL Cost 141 142 143 144 145 146 Labor rate variance = 147 148 + Labor efficiency variance 149 yes 150 151 Variable OH Variances: Hint? Variable OH Applied based on units 152 Variable OH efficiency variance 153 Variable OH spending rate variance 154 Actual Var. OH Cost Flexible Budget Standard (or budget) 155 156 157 158 159 160 Variable OH Spending rate var 161 Var OH Efficiency Variance = 162 163 164 165 Fixed OH Variance: 166 Fixed Overhead Spending Variance 167 Actual Cost Standard (or budget) 168 169 170 171 172 Fixed OH Spending Var 499 93 74 Check your work her your variances from above the 5100 7 or $1300 U or S2000F) This is for you only and is not grade Does you want the beginnend and Make sure you do not put space 35 thes to you have the rou Did you put space with the 36 Problem SE CHECK pertiner or with parenthround 27 Material Price Variance 78 Material Usare Variance 79 Labow Rate Variance 10 Labor Efficiency Variance 31 Variable OH Spendin Variance 2 Varinble oH ffficiency Variance 33 Fixed OH Spending Variance 30
