Can you please help me round these answers to 2 decimal points? Thank you.

(A) Direct material, material price variance = $12,210 unfavorable

(B) Direct material quantity variance = $3,575 unfavorable

(C) Direct labour rate variance = $800 favorable

(D) Direct labour efficiency variance = $2,025 favorable

Steps:

• The answer for the cost variance is favourable when the standard cost is higher than the actual cost and the other way around.

• Direct material, material price variance = [standard price-actual price] * actual quantity.
• Direct material, material price variance = [$3.25--$4.9] *7,400 = $12,210 unfavorable

• Direct material quantity variance = [standard quantity-actual quantity] *standard price
• Direct material quantity variance = [6,300--7,400] *3.25 = $3,575 unfavorable

• Direct labour rate variance = [standard rate-actual rate] *actual labour hours
• Direct labour rate variance = [1,600*$13.50]-$20,800 = $800 favorable

• Direct labour efficiency variance = [standard hours-actual hours] *standard rate
• Direct labour efficiency variance = [1,750--1,600] *13.50 = $2.025 favorable

Chapter 11

Time Wasters

(A) The Margin

formulae:

Operating Income / Sales x 100%

1,200,000 / 25,000,000 x 100%

= 4.8%

(B) The Turnover

formulae: Sales / Average Operating Assets

25,000,000 / 3,000,000

= 8.33 times

(C) The Return on Investment

formulae: Operating Income / Average Operating Assets x 100%

1,200,000 / 3,000,000 x 100%

= 40%

(D) The Residual Income

formulae: Operating income - (Required Rate of Return x Average Operating Assets)

1,200,000 - (0.22 x 3,000,000)

= $360,000

Dilly Dally

(A) The Margin

formulae: Operating Income / Sales x 100%

2,600,000 / 43,000,000 x 100%

= 6%

(B) The Turnover

formulae: Sales / Average Operating Assets

43,000,000 / 4,500,000

= 9.56 times

(C) The Return on Investment

formulae: Operating Income / Average Operating Assets x 100%

2,600,000 / 4,500,000 x 100%

= 57.78%

(D) The Residual Income

formulae: Operating income - (Required Rate of Return x Average Operating Assets)

2,600,000 - (0.22 x 4,500,000)

= $1,380,000