Materials and labor variance analysis CNN Co produces a high quality metallic camera stand known in the market as the tripod The company has a standard cost system to help control costs and has established the following standards for one unit of the item Input Standard Direct materials 3 metal strips per tripod at P 2 00 per strip Direct labor labor hour per tripod at P 10 per hour At the start of the month, the budget shows a planned production of 1,800 units of tripod based on normal capacity at the end of the month, actual production was 1,900 units of tripod which resulted to using 6,000 strips of metal, purchased at a cost of P 2 10 per strip Required A Based on the budgeted production of 1,800 units How many metal strips must the company plan to use How much materials cost is included in the budget B Determine the actual cost of materials used C Based on the actual production of 1,900 units How many metal strips should have been used How much materials cost should have been incurred How many labor hours should have been spent How much labor cost should have been incurred D Determine the following Materials budget variance Materials standard cost variance Materials quantity and price variance E During the month, a total payroll of P 8,800 was paid to laborers, working 800 labor hours, to produce the 1,900 units of tripod Determine the following Total labor variance Labor efficiency variance Labor rate variance 1 Materials and labor variance analysis CNN Co produces a bigh quality metallic camera stand known in the market as the tripod The company has a standard cost system to help control costs and has established the following standards for one unit of the item Input Standard Direct materials 3 metal strips per tripod at P 2 00 per strip Direct labor 1 labor hour per tripod at P 10 per hour At the start of the month, the budget shows a planned production of 1,800 units of tripod based on normal capacity at the end of the month, actual production was 1,900 units of tripod which resulted to using 6,000 strips of metal, purchased at a cost of P 2 10 per strip Required Based on the budgeted production of 1,800 units How many metal strips must the company plan to use How much materials cost is included in the budget b Determine the actual cost of materials used c Based on the actual production of 1,900 units How many metal strips should have been used How much materials cost should have been incurred How many labor hours should have been spent How much labor cost should have been incurred d Determine the following Materials budget variance Materials standard cost variance Materials quantity and price variance e During the month, a total payroll of P 8,800 was paid to laborers, working 800 labor hours, to produce the 1,900 units of tripod Determine the following Total labor variance Labor efficiency variance Labor rate variance

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Materials and labor variance analysis CNN Co. produces a high quality metallic camera stand known in the market as the tripod. The company has a

Materials and labor variance analysis

CNN Co. produces a high quality metallic camera stand known in the market as the "tripod". The company has a standard cost system to help control costs and has established the following standards for one unit of the item:

Input Standard

Direct materials 3 metal strips per tripod at P 2.00 per strip

Direct labor labor hour per tripod at P 10 per hour

At the start of the month, the budget shows a planned production of 1,800 units of tripod based on normal capacity; at the end of the month, actual production was 1,900 units of tripod which resulted to using 6,000 strips of metal, purchased at a cost of P 2.10 per strip.

Required:

A. Based on the budgeted production of 1,800 units:

How many metal strips must the company plan to use?
How much materials cost is included in the budget?

B. Determine the actual cost of materials used.

C. Based on the actual production of 1,900 units:

How many metal strips should have been used?
How much materials cost should have been incurred?
How many labor hours should have been spent?
How much labor cost should have been incurred?

D. Determine the following:

Materials budget variance
Materials standard cost variance
Materials quantity and price variance

E. During the month, a total payroll of P 8,800 was paid to laborers, working 800 labor hours, to produce the 1,900 units of tripod. Determine the following:

Total labor variance
Labor efficiency variance
Labor rate variance

1. Materials and labor variance analysis CNN Co. produces a bigh quality metallic camera stand known in the market as the "tripod". The company has a standard cost system to help control costs and has established the following standards for one unit of the item: Input Standard Direct materials 3 metal strips per tripod at P 2.00 per strip Direct labor 1 labor hour per tripod at P 10 per hour At the start of the month, the budget shows a planned production of 1,800 units of tripod based on normal capacity; at the end of the month, actual production was 1,900 units of tripod which resulted to using 6,000 strips of metal, purchased at a cost of P 2.10 per strip. Required: Based on the budgeted production of 1,800 units: How many metal strips must the company plan to use? How much materials cost is included in the budget? b. Determine the actual cost of materials used. c. Based on the actual production of 1,900 units: . . How many metal strips should have been used? How much materials cost should have been incurred? How many labor hours should have been spent? How much labor cost should have been incurred? d. Determine the following: Materials budget variance Materials standard cost variance Materials quantity and price variance e. During the month, a total payroll of P 8,800 was paid to laborers, working 800 labor hours, to produce the 1,900 units of tripod. Determine the following: Total labor variance Labor efficiency variance Labor rate variance