solve for yellow boxes in first 2 pics (15.01 -15.04, what was the variable over
ID: 2406363 • Letter: S
Question
solve for yellow boxes in first 2 pics (15.01 -15.04, what was the variable overhead efficiency variance, what was the variable OH spending variance, what is the fixed OH volume variance, what is the fixed OH spending variance) rest of the pics are other relevant info, not too sure what is needed
Standard Job Order Costing - Variance Analysis Special order lamps are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders: $16.000000 per lamp Lamp Kits Direct Labor Variable Overhead 2.400000 per lamp (4 lamps/hr.) 0.250000 per lamp (4 lamps/hr.) *Fixed Overhead 10.000000per lamp 28.650000 Total "Fixed overhead is based on expected production of 4,007 customized lamps each month. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences Job Order Costing Section On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,125 Lamp Kits$16.30 per kit. 9-Jan 4,200 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 590 Direct Labor Hours $9.55 per hour. 30-Jan Payroll of 640 Direct Labor Hours $9.80 per hour. 30-Jan 3,993 lamps were completed and shipped. All materials requisitioned were used or scrapped. Actual Variable Overhead Actual Fixed Overhead $ 1,107.00 $ 40,123.45Explanation / Answer
Answers :
15.01 ) Total Material Price Variance for lamp kits purchased:
= Actual quantity of lamp kits required for job (Standard purchase price - Actual purchase price )
All 3 figures are given in the question
i.e. 4000 lamps ($ 16.00 - $16.30)
= $ 1200 (Unfavorable)
This is unfavorable as actual purchase price per unit is more than the standard / budgeted rate)
15.02) Material Usage Variance for lamp kits
= Standard Price (Standard Quantity – Actual Quantity)
All 3 figures are given, Standard Quantity refers to the number of lamp kits requisitioned & Actual quantity is number of lamps completed and shipped
= 16 (4200-3993) = 3312 (Unfavorable)
15.03) Direct Labor efficiency Variance
= Standard rate per hour (Standard Hours for completing 3993 units – Actual Hours taken to complete 3993 units )
= (2.40*4) *(3993 / 4- (590+640)) = 9.60 (-231.75)
= 2224.80 (Unfavorable)
15.04) Direct labor rate variance
= Actual Quantity of lamp kits completed (Standard Rate per hour – Actual Rate per hour)
= Standard Rate per hour = 2.4*4 = 9.60 / hour
= Actual Rate per hour = (590*9.55 + 640*9.80) / 640+590 = 9.68 / hour
= 3993 (9.6-9.68) = 319.44 (unfavorable)
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