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Can you help check my answers on the attached and fill in shaded areas I'm missing...? This problem is confusing me. Straightforward variance analysis Arrow
Can you help check my answers on the attached and fill in shaded areas I'm missing...? This problem is confusing me.
Straightforward variance analysis Arrow Enterprises uses a standard costing system. The standard cost sheet for product No. 549 follows: Direct materials: 4 units @ $6.50 Direct labor: 8 hours @ $8.50 Variable factory overhead: 8 hours @ $7.00 Fixed factory overhead: 8 hours @ $2.50 Total standard cost per unit $ 26.00 68.00 56.00 20.00 $170.00 The following information pertains to activity for December: 1) Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations. 2) Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity. 3) Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year. 4) Actual production amounted to 6,700 completed units. Instructions a Compute Arrow's direct material variances. b Compute Arrow's direct labor variances. c Compute Arrow's variances for factory overhead. YOUR ANSWERS BASED UPON COURSE START DATE a. Compute Arrow's direct material variances. Act cost Std cost Std cost Act Qty Act Qty Std Qty Materials Quantity Variance Materials Price Variance Total Materials Variance 1 2635 b. Compute Arrow's labor variances. Act rate Std rate Std rate Act hrs Act hrs Std hrs Labor Efficiency Variance Labor Rate Variance Total Labor Variance c. Compute Arrow's variances for factory overhead. Variable overhead efficiency variance Actual Quantity The Amount the of Input at Actual Actual Quantity The amount Prices (Aq X Ap) of Input Should Allowed for N/A of Input Have Cost Production, at Variable: (Aq X Sp) Standard Prices Fixed: Budget (Sq X Sp) Inc hours x std rate Act pro x OH std hrs x std rate 9 12850Step by Step Solution
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