Direct Materials Variances The following data relate to the direct materials cost for the production of 2,100 automobile tires: Actual: 54,200 lbs. at $1.85 per Ib. Standard: 55,300 lbs. at $1.8 per lb. a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance Unfavorable Direct Materials Quantity Variance $ Favorable Total Direct Materials Cost Variance Unfavorable b. The direct materials price variance should normally be reported to the Purchasing Department V. If lower amounts of direct materials had been used because of production efficiencies, the variance would be reported to the Production Supervisor . If the favorable use of raw materials had been caused by the purchase of higher-quality raw materials, the variance should be reported to the Purchasing Department Feedback Direct Labor variances La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Quantity of direct labor used 650 hrs. Actual rate for direct labor $12.1 per hr. Bicycles completed in April 310 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $12.3 per hr a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number Direct Labor Rate Variance Favorable Direct Labor Time Variance I! Unfavorable Total Direct Labor Cost Variance Unfavorable b. How much direct labor should be debited to Work in Process? ances at the beginning of June, Bezco Toy Company budgeted 26,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $31,200 11,700 Direct labor Total $42,900 The standard materials price is $0.4 per pound. The standard direct labor rate is $9 per hour. At the end of une, the actual direct materials and direct labor costs were as follows: Actual direct materials $29,500 Actual direct labor 11,100 Total $40,600 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 23,900 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance Unfavorable Direct labor time variance Unfavorable Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 3,000 computers: Actual: Variable factory overhead $60,400 Fixed factory overhead 26,250 Standard: 3,000 hrs. at $26 78,000 If productive capacity of 100% was 5,000 hours and the factory overhead cost budgeted at the level of 3,000 standard hours was $88,500, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $5.25 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variance Amount Favorable/Unfavora Controllable variance Favorable Volume variance Unfavorable Total factory overhead cost variance: Unfavorable Feedback Check My Work
