Below I need help with questions 1-4, I've also included an example showing the answer.

Example: Simon makes strawberry jelly. He estimates his direct materials will be 12 oz per jar at a standard cost of $0.75/oz. The actual result for 500 jars of jelly was 10 oz per jar at a cost of $0.84/oz. Calculate the direct materials cost variance and the direct materials efficiency variance. Indicate whether the variance is favorable or unfavorable.

Answer:

Cost Variance (AC - SC) x AQ = ($0.84/oz - $0.75/oz) x (500 jars x 10oz) = $450 Unfavorable

Efficiency Variance (AQ-SQ) x SC = [(500 jars x 10 oz) - (500 jars x 12oz)] x $0.75/oz = $750 Favorable

Problem 1: A fashion designer created a new design for a gown. The estimated direct materials were 8 yards at a standard cost of $36/yard. The actual result for 500 gowns was 8.25 yards at a cost of $34.75/yard. Calculate the direct materials cost variance and the direct materials efficiency variance. Indicate whether the variance is favorable or unfavorable.

Answer:

Problem 2: Rocking J Ranch estimated they would need to purchase 8 bales of hay for each cow at a standard cost of $85/bale. The actual result for 40 cows was 7.5 bales at a cost of $90/bale. Calculate the direct materials cost variance and the direct materials efficiency variance. Indicate whether the variance is favorable or unfavorable.

Answer:

Problem 3: The factory estimated they would need to 0.75hr of labor per unit at a standard cost of $12.50/hr. The actual result for 4,000 units was 0.95hr at a cost of $12.75/hr. Calculate the direct labor cost variance and the direct labor efficiency variance. Indicate whether the variance is favorable or unfavorable.

Answer:

Problem 4: Yellow Cab Co. estimated they would have 28 MPG (miles per gallon) with a standard cost of fuel of $2.45/gallon. The actual result for 3,000 miles was 26.5 MPG with a fuel cost of $2.38/gallon. Calculate the direct materials cost variance and the direct materials efficiency variance. Indicate whether the variance is favorable or unfavorable.