Exercise 10-23 Determination of Variances Using Diagrams (LO 10-3)

Exercise 10-23 Determination of Variances Using Diagrams (LO 10-3) Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Quantity, 8.16 hour Rate, $8.00 per hour Direct Material: Quantity, 9 kilograms Price, $0.42 per kilogram Actual material purchases amounted to 233,200 kilograms at $0.47 per kilogram. Actual costs incurred in the production of 22,000 units were as follows: Direct labor: Direct material: $33,264 for 3,960 hours $98,230 for 286,880 kilograms Required: Fill in the amounts In the tables below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round "per kilogram" to 2 decimal places.) Actual Material Cost Actual Quantity Actual Price 206,800 X $ 0.47 kilograms per kilogram Used Direct-Material Price and Quantity Variances Projected Material Cost Actual Standard Quantity Price 206.800 0.42 kilograms used per kilogram Standard Material Cost Standard * Standard Price Quantity is 0.42 kilograms per kilogram allowed $ 97,198 $ 86,856 s 10,340 Unfavorable Direct-material price variance Direct-material quantity variance $ 10.340 Unfavorable Direct-material variance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). Round "per kilogram to 2 decimal places.) Direct-Material Purchase Price Variance Actual Material Cost of Purchases Projected Material Cost of Purchases Actual Actual * Standard Quantity Quantity * Price * Actual kilograms purchased per kilogram kilograms purchased per kilogram Direct-material purchase price variance Required 1 Required 2 Required 3 Fill in the amounts in the tables below. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter"" for no effect (i.e., zero variance). Round "per hour" to 2 decimal places.) Actual Labor Cost Actual Hours * Actual Rate Direct-Labor Rate and Efficiency Variances Projected Labor Cost Actual Hours * Standard Rate Standard Labor Cost Standard * Standard Rate Hours hours used per hour hours used per hour hours allowed per hour 0 0 Direct-labor rate variance Direct-labor efficiency variance Direct-labor variance