STANDARD COSTING AND VARIANCE ANALYSIS

ABC COMPANY AND DEF COMPANY

The following July information is for ABC Company:

STANDARD COSTING AND VARIANCE ANALYSIS ABC COMPANY AND DEF COMPANY Standards: Material 3.0 feet per unit @ 4.20 per foot Labor 2.5 hours per unit @ 7.50 per hour Actual: Production Material 2,750 units produced during the month 8,700 feet used; 9,000 feet purchased @ 4.50 per foot Labor 7,000 direct 1 2 3 4 labor hours @ 7.90 per hour (Round all answers to the nearest peso.) Refer to ABC Company. is the material price variance (calculated at point of Refer to ABC Company. is the material quantity variance? Refer to ABC Company. is the labor rate variance? Refer to ABC Company. Vinlat is the labor efficiency variance? EFCOMP DEF Company has the following information available for October when 3,500 units were produced Standards: Material 3.5 pounds per unit @ 4.50 per pound Labor 5.0 hours per unit @ 10.25 per hour Actual: Material purchased used 12,300 pounds 4.25 11,750 pounds 17,300 direct labor hours @ 10.20 per hour 5 6 7 S 9 Refer to DEF Company. is the labor rate variance? Refer to DEF Company. is the labor efficiency variance? Refer to DEF Company. is the material price variance (based on quantity purchased)? Refer to DEF Company. is the material quantity variance? Refer to DEF Company. Assume that the company computes the material price variance on the basis of material issued to production. is the total material variance?