Question
The following data were drawn from the records of Quentin Corporation: Planned volume for year (static budget): 6000 Standard direct labor materials cost per unit:
The following data were drawn from the records of Quentin Corporation:
Planned volume for year (static budget): 6000
Standard direct labor materials cost per unit: 3.1 pounds @ $3.00 per pound
Standard direct labor cost per unit: 2 hours @ $8.00 per hour
Total expected fixed overhead costs: $56400
Actual volume for the year (flexible budget): 6300 units
Actual direct materials cost per unit: 2.7 pounds @ $4.00 per pound
Actual direct labor cost per unit: 2.3 hours @$7.20 per hour
Total actual fixed overhead costs: $45000
a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity.
b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).
c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.
d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).
e. Calculate the predetermined overhead rate, assuming that Quentin uses the number of units as the allocation base.
f. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U).
g. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).
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