Standard costing and Variance

The budgeted and actual results of the distillation department for the week ended 30 June 2012 are shown below.

Distillation department: operating results week ended 39 June 2012

Production	Budgeted	Budgeted 2,500 barrels	Actual	Actual 2,400 barrels
Material	12,500 litres	$106,250	11,520 litres	$99,072
Labour	10,000 labour hours	$60,000	10,080 labour hours	$61,488
Fixed overheads	20,000 machine hours	$200,000	18,960 machine hours	$185,808
Total cost		$366,250		$346,368

Required:

1. Calculate the following:

1. Standard price of material per litre (1 mark)

ii. Actual price of material per litre (1 mark)

iii. Standard litres of material per barrel (1 mark)

iv. Standard labour per hour (1 mark)

v. Standard labour hours per barrel (1 mark)

vi. Standard machine hours per barrel (1 mark)

vii. Budgeted fixed overheads per budgeted machine hour (1mark)

viii. Standard absorption cost per barrel (2 marks)

2. Using the data provided in the operating results and your answer to part (a) calculate the following variances:

1. Material price variance (2 marks)
2. Material usage variance (2 marks)
3. Labour rate variance (2 marks)
4. Labour efficiency variance (2 marks)
5. Fixed overhead expenditure variance (2 marks)
6. Fixed overhead volume variance (2 marks)
7. Fixed overhead capacity variance (2 marks)
8. . Fixed overhead efficiency variance (2 marks)