VSB 3006 Dr. JME

Handout - Standards

Standards: Actual:

RM 2 pounds @ $1.00 / pound Bought 1,100 pounds for $1,155

DL 3 hours @ $6.00 / hour Used 760 pounds of RM

DL was $6,932.50 for 1,175 hours

VOH 3 hours @ $4.00 / hour $4,650

FOH 3 hours @ $15.00 / hour $18,100

Normal production = 400 units Actual Production = 390 units

Required Determine the following six variances and indicate its direction.

NAME AMOUNT F / UN

1 Raw Material Price _______________ _____

2 Raw Material Quantity _______________ _____

3 Direct Labor Rate _______________ _____

4 Direct Labor Efficiency _______________ _____

5 Variable Overhead Spending _______________ _____

6 Fixed Overhead Spending _______________ _____

7 Overhead Efficiency _______________ _____

8 Overhead Volume _______________ _____