Question
Need help with understanding the prcoess behind variance, I'm used to solving it in a different format, please help Compute the following variances: 1. material
Need help with understanding the prcoess behind variance, I'm used to solving it in a different format, please help
Compute the following variances:
1. material variance (price and quantity) I got 5,720 U for material price variance, not sure if this is correct
2. labor variance (rate and efficiency)
3. variable overhead variance (spending and efficiency)
West and Jones Granite Corp uses a standard cost system for its single product. The following data are available:
ACTUAL for the current year:
Purchase of raw materials (5,200 sq ft at $11.80) ..............$61,360
Raw materials used 4,800 sq ft
Direct Labor costs (22,000 at $13.80) ....................$303,600
Actual variable overhead cost .................$64,250
Units produced........................ 9,820 units
Standards per unit of product:
Raw materials 1.0 sq ft at $10.70/sq ft
Direct labor 2.4 hours at $13.50/hr
Variable overhead $2.75 per direct labor hour
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