Question
Milestone Three - Variance Analysis Data for Variance Analysis: Budgeted (Standard) Hours/Qty Budgeted (Standard) Rate Actual Hours/Qty Actual Rate Labor 160 $ 14.67 180 $16.50
Milestone Three - Variance Analysis | |||||
Data for Variance Analysis: | |||||
Budgeted (Standard) Hours/Qty | Budgeted (Standard) Rate | Actual Hours/Qty | Actual Rate | ||
Labor | 160 | $ 14.67 | 180 | $16.50 | |
Materials | 600 | $ 9.10 | 660 | $ 10.00 | |
Variance | Favorable/ Unfavorable | ||||
Direct Labor Time Variance | |||||
(Actual Hours - Standard Hours) x Standard Rate | $ ??? | ? | |||
Direct Labor Rate Variance | |||||
(Actual Rate - Standard Rate) x Actual Hours | ???? | ? | |||
Direct Materials Quantity/Efficiency Variance | |||||
(Actual Quantity - Standard Quantity) x Standard Price | ?? | ?? | |||
Direct Materials Price Variance | |||||
(Actual Price - Standard Price) x Actual Quantity | ?? | ? | |||
Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation.For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 33 x 20 = 660 per month. The other costs incurred by the business include:
Variance At the end of the month, you find that the labor and materials spent on manufacturing collars was different from what you estimated:
You now need to determine the variance in the materials and labor cost from what you estimated in Milestone Two based on the market research data. |
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