Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help explain how to compute the variances below from 1-6. Orville Compam/s standard and actual costs per unit are provided below for the most
Please help explain how to compute the variances below from 1-6.
Orville Compam/s standard and actual costs per unit are provided below for the most recent period. During this 400 units were actually produced. Materials: Standard: 2 $1.50 per m. Actual: 2.1 mgtwat $1.60 per m. Direct Standard: 1.5 hrs. at $6_00 per hr. Actual: 1.4 hrs. at $6.50 per hr. Variable overhead: Standard: 1.5 hrs. at $3_40 per hr. Actual: 1.4 hrs. at $3.10 per hr. Total unit cost Standard $3.00 5.10 Actual $3.36 9.10 4.34 For simplicity, assume there was no inventory of materials at the beginning or end of the period. Required: Given the information above, compute the following variances. Also indicate the variances are favorable or unfavorable. I) 2) 3) 4) 5) 6) Materials price variance Materials quantity variance Direct@eycrate variance Direct 'Aheycefficienck/ variance Variable overhead spending variance Variable overhead efficiency variance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started