Would like to know if the variance are calculated correctly? I need some to help

Question

Would like to know if the variance are calculated correctly?
I need some to help with the favorable and unfavorable. thank you.

7 8 9 10 INSTRUCTIONS: Prepare the variances and identify whether they are favorable or unfavorable The below website will provide further assistance with variances: http://accounting-simplified.com/management/variance analysis/material/price htm 12 DATA FOR VARIANCE ANALYSIS: Standard Standard Rate Actual Hours / Qty Actual Rate 14 16 18 19 20 21 Hours/Qty 150 S 1/000 S 12.00 180 S 11.50 Grooming Labor Grooming Materials 2.00 1,200 $ 3.00 Favorable/ Unfavorable Variance 23Groomer Direct Labor Time Variance 24 25 26 27 360.00 Actual Hours Standard Hours) x Standard Rate Groomer Direct Labor Time Varlance Actual Rate Standard Rate) x Actual Hours 28 29 30 31 :32 Groomer Direct Labor Time Variance Actual Quantity- Standard Quantity) xStandard Price Groomer Direct Labor Time Varlance (Actual Price - Standard Price) x Actual Quantity 34 36 37 38 39 40 41 Contribution Margin Analysis Break-Even Analysis Instructions 4Variable Fixed Instructions-Milestone2 Ready

Explanation / Answer

Groomer Direct Labor Time variance = ( Actual time - Standard time ) * Standard rate

= ( 180 - 150) * 12 = 360 Unfavourable

Note ......... Why Unfavourable ? ....... This very simple. When ever actual exceeds the standard it will be Unfavorable in respect of cost items. Here Actual time 180 is more than standard time allowed 150.

Groomer Direct Labor rate variance = ( Actual rate - Standard rate ) * Actual Hours

= ( 11.50 - 12 ) * 180 = 90 Favourable

Here actual rate is less than standard rate. So, its a favourable

Groomer Direct Material Usage variance = ( Actual quantity - Standard quantity ) * Standard rate

= (1200 - 1000) * 2 = 400 Unfavorable

Groomer Direct Material price variance = ( Actual Price - Standard Price ) * Actual quantity

= ( 3 - 2 ) * 1200 = 1200 Unfavorable

Thus all you calculation are 100% correct.

Hope you understand how to fix ........ favorable or unfavorable.

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