Budget variance analysis (3 column analysis)

(micro analysis):

Using a budget variances 3 column format:

-column 1 Actuals

- column 2 Flexible budget (actual input at expected price)

- column 3 Flexible budget ( standard output for actual output at expected price)

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requirement:

1) prepare schedules of the price and efficiency/quantity variances for:

Direct Material And direct labor (3 column variance analysis)

-The current periods data is below:

-materials purchased and used 13,600 pounds

-direct labor costs incurred, 22,000 hours, $7.50 per hour

-variable overhead cost incurred, $19,000

- finished units produced 2000

-actual material costs $1.85 per pound

- variable overhead rate $1.60 per hour

-standard direct labor cost $8.00 per hour

-standard material costs $2.00 per pound

- standard pds. of material in a finished unit 6

-std direct labor hours per finished unit 10

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