The Lopez Company uses standard costing its manufacturing plant for auto parts. The standard cost of a particular auto-part, based on 4,000 units of output per year, and budgeted variable overhead of $192,0 as follows: Per Unit Direct Materials Direct Labor DLH Variable overhead 5.00 15.00 Budgeted Units 4,000 Budgeted variable OH cost Budgeted fixed OH cost $192,000 $100,000 There was no beginning raw materials inventory, but ending inventory consisted of 1,000 lbs. of raw materials. Actual production was 4,200 units, and actual costs were as follows. Actual Total Cost Direct Materials 13,460 lbs $ 66,836 Direct Labor 21,500 DLH 344,000 Variable overhead 24,600 MH 204,000 Fixed overhead 95,000 Actual Production 4.200 Ending raw materials inventory (lbs) 1.000ed on Actual pow SER Tahom 12 AA = z BU BOA E Wrap Text Merge & Center Number : 3-%253 Condtional formatas con Formatting Table Styles- naut Delete come Aliment Actual Quanity at Actual Price Actual Quantity Used, at Standard Price Q R S T U Production (H19) Based on Planned Planning Bud Production (9) Flexible Budget AQ 13,460 $ X AP X $4.97 66,836 Actual Quantity Purchased at Standard Price AQX SP 13,460 X $ 5.00 $67,300 AQ X 12,460 X $ $62,300 SP 5.00 SQ X 12,600 x $ $63,000 SP 5.00 SQ X 12,000 $ $60,000 SP 5.00 Price Variance $464 Favorable Quantity Variance 5700 Favorable Activity Variance $3,000 Unfavorable Compare the lite Budget SQ to the Planning Body S Remember that when the actual quantity purchased is different from the actual quantity used the Price and Quantity variances are calculated separately. The price variance is based on the actual quantity purchased, while the quantity variance is based on the actual quantity used. Also, it no longer makes sense to talk about a total variance. Draw Home Insert 3 X Cut - format Painter Clipboard Page Layout 12 O Formulas AA A Data Review === View Help Wrap Text Merge & Center - Number BI $ -% Insert Delete 48-49 Conditional Format as Cell Formatting Table Styles Styles cats A B C D E 1 M N O P Q R S Actual Hours of Inputs, Actual Rate AH X AR 21,500 X $16.00 $ 344,000 F Direct Labor Variances Actual Hours of Inputs, at Standard Rate AH X SR 21,500 X $ 15.00 322,500 Flexible Budget SH X SR 20,500 X $ 15.00 $307,500 Planning Budget SH X SR 21,000 $ 15.00 $315,000 Efficiency Variance Rate Variance 21,500 unfavorable $ 15,000 Activity Variance $7,500 unfavorable Favorable Total Spending Variance 6,500 Unfavorable Flexible Budget Variable Overhead Variances Actual Hours of Inputs. Actual Hours of Inputs, at Actual Rate Standard Rate AH XARAH X SR 24,600X Planning Budget SH X SR SH Rate Variance Efficiency Variance Activity Variance Favorable Favorable Favorable 4.UU Rate Variance Efficiency Variance Activity Variance Favorable Favorable Favorable Total Spending Variance Fixed Overhead Variances Actual Fixed Overhead Budgeted Fixed Overhead Standard Hours Allowed for Output, at Std. Rate SH X SR 25,200 X $ 5.00 This is would be the original Fixed POHR The Static Budgeted Fixed OH Static Budgeted Units X MH per Unit $ 95,000 100,000 $126,000 Price Variance 5,000 Favorable Volume Variance $26,000 Favorable