job order costing - variance analysis

Standard Job Order Costing - Variance Analysis 4 0 h 17 Special order lamps are manufactured in division S. Because of the precise nature of the process a 5 standard cost system has been developed. The following standards are used for the special orders: 6 7 8 5 36 7 38 39 36 7 8 59 Standards Lamp Kits $16.000000 per lamp Direct Labor 2.400000 per lamp (4 lamps/hr.) Variable Overhead 0.250000 per lamp (4 lamps/hr.) Fixed Overhead 10.000000 per lamp Total $28.650000 ** Fixed overhead is based on expected production of 4,008 customized lamps each month. Bo To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries 57 are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) 58 while entries are made to the accounting system at standard. Varance analysis is used to analyze the 59 differences 50 51 68 69 Job Order Costing Section 70 71 On January 1, 20x2. Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The 72 job called for 4,000 customized lamps. The following set of transactions occurred from 79 January 5 until the job was completed: 80 81 82 83 90 91 92 93 94 101 102 5 Jan Purchased 4.225 Lamp Kits @ $16.65 per kit 9-Jan 4.225 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 570 Direct Labor Hours @ $9.70 per hour. 30-Jan Payroll of 620 Direct Labor Hours $9.95 per hour. 30-Jan 3,992 lamps were completed and shipped. All materials requisitioned were used or scrapped 103 104 105 106 107 108 109 110 Month End Overhead Information Actual Variable Overhead Actual Fixed Overhead $ 1,499.40 $ 39,623.45 How many Lamps were completed? 3,992 lampe Note: Show favorable variances as negative numbers Round dollars to two places, $##.## What was the total material price variance for the Lamp Kits purchased? 1 What was the material usage variance for Lamp Kits? 5 7 28 29 What was the direct labor efficiency variance ? BO 31 33 34 What was the direct labor rate variance? 35 36 37 39 40 41 42 43 45 46 Note: Show favorable variances as negative numbers 5 8 What was the variable overhead efficiency variance ? 9 20 21 22 25 What was the variable OH spending variance ? 26 27 28 29 32 33 34 35 36 39 What is the fixed OH volume (denominator) variance? 40 41 42 43 46 47 48 49 What is the fixed OH spending variance? 50 53 54 55 56 57 (16. (16.0