Need solutions for questions 20.01 through 21.05.

Standard Job Order Costing -

Variance Analysis

Special order lamps are manufactured in division S. Because of the precise nature of the process a

standard cost system has been developed. The following standards are used for the special orders:

Standards

Figurines

$9.500000

per lamp

Electrical Sets

1.300000

per lamp

Lamp Shade

per lamp

Direct Labor

2.400000

per lamp (4 lamps/hr.)

Variable Overhead

per lamp (4 lamps/hr.)

**

Fixed Overhead

per lamp

Total

** Fixed overhead is based on expected production of ##### customized lamps each month.

To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries

are made to the Job Order System at actual cost (overhead is applied based on actual labor hours)

while entries are made to the accounting system at standard. Variance analysis is used to analyze the

differences.

Job Order Costing Section

On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The

job called for 4,000 customized lamps. The following set of transactions occurred from

January 5 until the job was completed:

5-Jan

Purchased 4,100 figurines @ $9.75 per figurine.

6-Jan

Purchased 4,175 sets of electical components @ $1.25 per set.

7-Jan

Purchased 4,000 lamp shades @ $6.70 per set.

8-Jan

4,100 figurines were requisitioned.

9-Jan

4,150 sets of electrical components were requisitioned.

17-Jan

Payroll of 600 Direct Labor Hours @ $9.40 per hour.

28-Jan

3,990 lamp shades were requisitioned

30-Jan

Payroll of 650 Direct Labor Hours @ $9.65 per hour.

30-Jan

3,990 lamps were completed and shipped. All materials requisitioned were

used or scra-pped.

Month End Overhead Information

Actual Variable Overhead

$1,175.00

Actual Fixed Overhead

$40,373.45

How many Lamps were completed?

Note: Show favorable variances as negative numbers

Round dollars to two places, $##.##

What was the total material price variance for the figurines purchased?

{20.01}

What was the material usage variance for figurines?

{20.02}

What was the material price variance for the electrical components ?

{20.03}

What was the material usage variance for electrical components?

{20.04}

What was the direct labor efficiency variance ?

{20.05}

What was the direct labor rate variance?

{20.06}

Mary correctly completed the material variances for the lamp shades and the overhead variences.
Her work is correct however, in reviewing her work the standards were crossed out.
The total material price variance for the lamp shades purchased:								$640.00	Unfavorable
The variable overhead efficiency variance:								$282.80	Unfavorable
The variable OH spending variance:								$225.00	Favorable
The fixed OH volume (denominator) variance:								$200.40	Unfavorable
The fixed OH spending variance:								$193.25	Unfavorable
What was the standard cost of a Lamp Shade?										{21.01}
What was the standard cost per lamp for the variable overhead?										{21.02}
What was the budgeted fixed overhead?										{21.03}
What was the standard cost per lamp for the fixed overhead?										{21.04}
What was the monthly expected production of customized lamps
that was used to determine the standard fixed overhead rate?										{21.05}