Hi dear;

I have this assignment due this week. I seek your help to confirm my numbers..

I attached the assignment plus prob 11-15 in the text book with manual solution answer..

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PROBLEM 11-15 Comprehensive Variance Analysis [LO 11-1, LO 11-2, LO 11-3] Problem 1115 Excel template Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct laborhours each month and produce 1,950 robes. The standard costs associated with this level of production are as follows: Page 485 During April, the factory worked only 760 direct laborhours and produced 2,000 robes. The following actual costs were recorded during the month: At standard, each robe should require 2.8 yards of material. All of the materials purchased during the month were used in production. Required: Compute the following variances for April: 1. The materials price and quantity variances. 2. The labor rate and efficiency variances. 3. The variable manufacturing overhead rate and efficiency variances. Solution: Problem 11-15 (45 minutes) This is a very difficult problem that is harder than it looks. Be sure your students have been thoroughly \"checked out\" in the variance formulas before assigning it. 1. Standard Quantity Allowed for Actual Output, at Standard Price (SQ SP) 5,600 yards** Actual Quantity of Input, at Standard Price (AQ SP) 6,000 yards Actual Quantity of Input, at Actual Price (AQ AP) $36,000 $6.50 per yard* = $36,400 $6.50 per yard* = $39,000 Materials quantity variance = Materials price variance = $2,600 U $3,000 F Spending variance = $400 F *$18.20 2.8 yards = $6.50 per yard. **2,000 units 2.8 yards per unit = 5,600 yards Alternatively, the variances can be computed using the formulas: Materials quantity variance = SP (AQ - SQ) = $6.50 per yard (6,000 yards - 5,600 yards) = $2,600 U Materials price variance = AQ (AP - SP) = 6,000 yards ($6.00 per yard* - $6.50 per yard) = $3,000 F *$36,000 6,000 yards = $6.00 per yard Problem 11-15 (continued) 2. Many students will miss parts 2 and 3 because they will try to use product costs as if they were hourly costs. Pay particular attention to the computation of the standard direct labor time per unit and the standard direct labor rate per hour. Standard Hours Allowed for Actual Output, at Standard Rate (SH SR) 800 hours** $9 per hour* = $7,200 Actual Hours of Input, at Standard Rate (AH SR) 760 hours $9 per hour* = $6,840 Actual Hours of Input, at Actual Rate (AH AR) $7,600 Labor efficiency variance Labor rate variance = $360 F $760 U Spending variance = $400 U * 780 standard hours 1,950 robes = 0.4 standard hour per robe $3.60 standard cost per robe 0.4 standard hours = $9 standard rate per hour 2,000 robes 0.4 standard hour per robe = 800 standard ** hours Alternatively, the variances can be computed using the formulas: Labor efficiency variance = SR (AH - SH) = $9 per hour (760 hours - 800 hours) = $360 F Labor rate variance = AH (AR - SR) = 760 hours ($10 per hour* - $9 per hour) = $760 U *$7,600 760 hours = $10 per hour Problem 11-15 (continued) 3. Standard Hours Allowed for Actual Output, at Standard Rate (SH SR) 800 hours $3.00 per hour* = $2,400 Actual Hours of Input, at Standard Rate (AH SR) 760 hours $3.00 per hour* = $2,280 Actual Hours of Input, at Actual Rate (AH AR) $3,800 Variable overhead efficiency Variable overhead rate variance variance = $120 F = $1,520 U Spending variance = $1,400 U *$1.20 standard cost per robe 0.4 standard hours = $3.00 standard rate per hour Alternatively, the variances can be computed using the formulas: Variable overhead efficiency variance = SR (AH - SH) = $3.00 per hour (760 hours - 800 hours) = $120 F Variable overhead rate variance = AH (AR - SR) = 760 hours ($5.00 per hour* - $3.00 per hour) = $1,520 U *$3,800 760 hours = $5.00 per hour