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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: \begin{tabular}{|l|r|l|} \hline \multicolumn{1}{|c|}{ Standards } & & \\ \hline Figurines & $9.500000 & per lamp \\ \hline Electrical Sets & 1.300000 & per lamp \\ \hline Lamp Shade & 6.500000 & per lamp \\ \hline Direct Labor & 2.400000 & per lamp (4 lamps /hr). \\ \hline Variable Overhead & 0.250000 & per lamp (4 lamps /hr). \\ \hline Fixed Overhead & 10.000000 & per lamp \\ \hline Total & & \\ \hline \end{tabular} 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 4,050 figurines @ \$9.40 per figurine. 6-Jan Purchased 4,225 sets of electical components @ \$1.45 per set. 7-Jan Purchased 4,000 lamp shades @ \$6.70 per set. 8 -Jan 4,050 figurines were requisitioned. 9-Jan 4,200 sets of electrical components were requisitioned. 17-Jan Payroll of 640 Direct Labor Hours @ \$9.80 per hour. 28-Jan 3,989 lamp shades were requisitioned 30-Jan Payroll of 690 Direct Labor Hours @ \$10.05 per hour. 30-Jan 3,989 lamps were completed and shipped. All materials requisitioned were used or scrapped. Month End Overhead Information Actual Variable Overhead Actual Fixed Overhead \$ 1,463.00 5 How many Lamps were completed? Note: Show favorable variances as negative numbers How much was actually paid for the figurines purchased? How much should they have paid for number of figurines purchased? What was the total material price variance for the figurines purchased? How many extra figurines did they use? What was the material usage variance for figurines? How much was actually paid for the electric components purchased? What was the standard price for the number of electrical components purchased? What was the material price variance for the electrical components? How many extra electrical components did they use? What was the material usage variance for electrical components? How many hours did it take to produce the units produced? How many hours should it have taken to produce the units produced? How many extra hours did it take? What was the direct labor efficiency variance? How much did the company pay for the hours worked? How much should the company have paid for the hours worked? What was the direct labor rate variance? {15.01} {15.02} {15.03} {15.04} {15.05} {15.06} Note: Show favorable variances as negative numbers How many extra hours did it take to produce the 3,989 units? What was the variable overhead efficiency variance? How many hours did it actually take to make the products? How much did the company pay for the variable overhead? At the standard rate, what should the variable OH have cost? What was the variable OH spending variance? How much did the company pay for the fixed overhead? What was the fixed OH budget? What is the fixed OH spending variance