ONLY PART C NEEDED
Part C-August Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the beginning of the month. Actual data for August were as follows: Actual Direct Materials Price per Unit Quantity per Case Cream base $0.016 per oz. 102 ozs. Natural oils $0.32 per oz. 31 ozs. Bottle (8-oz.) $0.42 per bottle 12.5 bottles Actual Direct Actual Direct Labor Labor Rate Time per Case Mixing $18.20 19.50 min. Filling 14.00 5.60 min. Actual variable overhead $305.00 Normal volume 1,600 cases wore di daud data flotationais latvie Theatadaudentit, ef moetoviola, andard The Mine The prices of the materials were different than standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard. Required-Part C: 10. Determine and interpret the direct materials price and quantity variances for the three materials. Round your price values for Cream Base to three decimal places and Natural Oils & Bottles to two decimal places. * 11. Determine and interpret the direct labor rate and time variances for the two departments. Do not round hours. Round your answers to two decimal places.* 12. Determine and interpret the factory overhead controllable variance.* 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places and round your final answer to two decimal places.* 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,375 cases of production used in the budgets for parts (6) and (7)? * For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 10. Determine and interpret the direct materials price and quantity variances for the three materials. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your price values for Cream Base to three decimal places and Natural Oils & Bottles to two decimal places. Direct Materials Price Variance Cream Base Natural Oils Bottles $ Difference $ $ $ Direct materials price variance $ $ Direct Materials Quantity Variance Cream Base Natural Oils Bottles Difference $ Direct materials quantity variance $ $ The fluctuation in caused the direct material price variances. All the Direct material quantity variances were indicating 11. Determine and interpret the direct labor rate and time variances for the two departments. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Do not round hours. Round your answers to two decimal places. Direct Labor Rate Variance Mixing Department Filling Department $ $ Difference hrs. hrs. Direct labor rate variance $ $ Direct Labor Time Variance Mixing Department Filling Department hrs. hrs. hrs. hrs. Difference hrs. hrs. $ $ $ Direct labor time variance $ The change in the caused the labor rate variances. This change have been responsible for the direct labor time variance. 12. Determine and interpret the factory overhead controllable variance. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Factory Overhead Controllable Variance Factory overhead controllable variance The factory overhead controllable variance was caused by the variance in 13. Determine and interpret the factory overhead volume variance. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round rate to four decimal places and round your final answer to two decimal places. Factory Overhead Volume Variance Normal volume (cases) Actual volume (cases) Difference Factory overhead volume variance $ The volume variance indicates the cost of 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,375 cases of production used in the budgets for parts (6) and (7)? The production volume of cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of for the month. Thus, the standard cost must be based on the units of actual production. Part C-August Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the beginning of the month. Actual data for August were as follows: Actual Direct Materials Price per Unit Quantity per Case Cream base $0.016 per oz. 102 ozs. Natural oils $0.32 per oz. 31 ozs. Bottle (8-oz.) $0.42 per bottle 12.5 bottles Actual Direct Actual Direct Labor Labor Rate Time per Case Mixing $18.20 19.50 min. Filling 14.00 5.60 min. Actual variable overhead $305.00 Normal volume 1,600 cases wore di daud data flotationais latvie Theatadaudentit, ef moetoviola, andard The Mine The prices of the materials were different than standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard. Required-Part C: 10. Determine and interpret the direct materials price and quantity variances for the three materials. Round your price values for Cream Base to three decimal places and Natural Oils & Bottles to two decimal places. * 11. Determine and interpret the direct labor rate and time variances for the two departments. Do not round hours. Round your answers to two decimal places.* 12. Determine and interpret the factory overhead controllable variance.* 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places and round your final answer to two decimal places.* 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,375 cases of production used in the budgets for parts (6) and (7)? * For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 10. Determine and interpret the direct materials price and quantity variances for the three materials. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your price values for Cream Base to three decimal places and Natural Oils & Bottles to two decimal places. Direct Materials Price Variance Cream Base Natural Oils Bottles $ Difference $ $ $ Direct materials price variance $ $ Direct Materials Quantity Variance Cream Base Natural Oils Bottles Difference $ Direct materials quantity variance $ $ The fluctuation in caused the direct material price variances. All the Direct material quantity variances were indicating 11. Determine and interpret the direct labor rate and time variances for the two departments. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Do not round hours. Round your answers to two decimal places. Direct Labor Rate Variance Mixing Department Filling Department $ $ Difference hrs. hrs. Direct labor rate variance $ $ Direct Labor Time Variance Mixing Department Filling Department hrs. hrs. hrs. hrs. Difference hrs. hrs. $ $ $ Direct labor time variance $ The change in the caused the labor rate variances. This change have been responsible for the direct labor time variance. 12. Determine and interpret the factory overhead controllable variance. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Factory Overhead Controllable Variance Factory overhead controllable variance The factory overhead controllable variance was caused by the variance in 13. Determine and interpret the factory overhead volume variance. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round rate to four decimal places and round your final answer to two decimal places. Factory Overhead Volume Variance Normal volume (cases) Actual volume (cases) Difference Factory overhead volume variance $ The volume variance indicates the cost of 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500-case production volume rather than the planned 1,375 cases of production used in the budgets for parts (6) and (7)? The production volume of cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of for the month. Thus, the standard cost must be based on the units of actual production
