Requirement 2: Revise the data in your worksheet to reflect the results for the

Question

Requirement 2: Revise the data in your worksheet to reflect the results for the subsequent period as shown below: 1 Chapter 8: Applying Excel 2 3 Data 4 Exhibit 8-8: Standard Cost Card 5 6 Direct materials 7 Direct labor 8 Variable manufacturing overhead Inputs Standard Quantity Standard Price 3.0 pounds $4.00 $22.00 per hour 0.50 hours 0.50 hours $6.00 per hour 10 Actual results: 11 Actual output 2,160 units Actual variable manufacturing overhead cost $6,441 13 14 15 Actual direct materials cost Actual direct labor cost Actual Quantity 6,240 pounds 1,130 hours Actual price $4.2 pounds S22.1 per hour a-1. What is the materials quantity variance? (Indicate the effect of each variance by selecting "F" fo favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) The amount of the materials quantity variance

Explanation / Answer

Ans- a-1- Materials quantity variance-

Actual quantity of material used at standard price $

6240 pounds *$4.00 24,960

Standard quantity of materials at standard price

6,480 pounds * $ 4.00 25,920

___________________________

960 F

Direct materias quantity variance _________________________

a-2- Materials price variance-

Actual quantity of material purchased at actual price

6,240 pounds * $4.2 pound $ 26,208

Actual quantity of materials purchased at standard price

6,240 pounds *$4.00 pound 24,960

Direct material price variance 1,248 U

b-1 Labor efficiency variance

Actual direct labor hours worked at standard rate

1,130 hours *$22 per hour $ 24,860

Standard direct labor hours allowed at standard rate

1,080 hours *$22 per hour $ 23,760

2,160*.50= 1,080 hours

Direct labor efficiency variance $ 1,100 U

b-2- Direct labor rate variance

Actual direct labor hours worked at actual rate

1,130 hours * $22.1 per hour $ 24,973

Actual direct labor hours worked at standard rate

1,130 hours *$ 22.0 per hour $ 24,860

Direct labor rate variance $ 113U

c-1- Variable overhead efficiency variance

Actual hours worked at standard rate

1,130 hours * $6.00 per hour $ 6,780

Standard hours allowed at standard rate

1,080 hours *$ 6.00 per hour $ 6,480

2,160 units *.50 hour

Variable overhead efficiency variance $300 U

c-2 Variable overhead rate variance

actual hours worked at actual rate $ 6,441

Actual hours worked at standard rate

1,130 hours * $ 6.00 per hour $6,780

Variable overhead rate variance $339F

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