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Chapter 10: Applying Excel Data Exhibit 10-2: Standard Cost Card Inputs Standard

ID: 2473710 • Letter: C

Question

Chapter 10: Applying Excel Data Exhibit 10-2: Standard Cost Card Inputs Standard Quantity Standard Price Direct materials 3.0 pounds $4.00 per pound Direct labor 0.50 hours $22.00 per hour Variable manufacturing overhead 0.50 hours $6.00 per hour Actual results: Actual output 2,000 units Actual variable manufacturing overhead cost $7,140 Actual Quantity Actual price Actual direct materials cost 6,500 pounds $3.80 per pound Actual direct labor cost 1,050 hours $21.60 per hour Enter a formula into each of the cells marked with a ? below Main Example: Chapter 10 Exhibit 10-5: Standard Cost Variance Analysis–Direct Materials Standard Quantity Allowed for the Actual Output, at Standard Price ? pounds × ? per pound = ? Actual Quantity of Input, at Standard Price ? pounds × ? per pound = ? Actual Quantity of Input, at Actual Price ? pounds × ? per pound = ? Direct materials variances: Materials quantity variance ?    Materials price variance ?    Materials spending variance ?    Exhibit 10-6: Standard Cost Variance Analysis–Direct Labor Standard Hours Allowed for the Actual Output, at Standard Rate ? hours × ? per hour = ? Actual Hours of Input, at Standard Rate ? hours × ? per hour = ? Actual Hours of Input, at Actual Rate ? hours × ? per hour = ? Direct labor variances: Labor efficiency variance ?    Labor rate variance ?    Labor spending variance ?    Exhibit 10-7: Standard Cost Variance Analysis–Variable Manufacturing Overhead Standard Hours Allowed for the Actual Output, at Standard Rate ? hours × ? per hour = ? Actual Hours of Input, at Standard Rate ? hours × ? per hour = ? Actual Hours of Input, at Actual Rate ? hours × ? per hour = ? Variable overhead variances: Variable overhead efficiency variance ?    Variable overhead rate variance ?    Variable overhead spending variance ?    Chapter 10: Applying Excel Data Exhibit 10-2: Standard Cost Card Inputs Standard Quantity Standard Price Direct materials 3.0 pounds $4.00 per pound Direct labor 0.50 hours $22.00 per hour Variable manufacturing overhead 0.50 hours $6.00 per hour Actual results: Actual output 2,000 units Actual variable manufacturing overhead cost $7,140 Actual Quantity Actual price Actual direct materials cost 6,500 pounds $3.80 per pound Actual direct labor cost 1,050 hours $21.60 per hour Enter a formula into each of the cells marked with a ? below Main Example: Chapter 10 Exhibit 10-5: Standard Cost Variance Analysis–Direct Materials Standard Quantity Allowed for the Actual Output, at Standard Price ? pounds × ? per pound = ? Actual Quantity of Input, at Standard Price ? pounds × ? per pound = ? Actual Quantity of Input, at Actual Price ? pounds × ? per pound = ? Direct materials variances: Materials quantity variance ?    Materials price variance ?    Materials spending variance ?    Exhibit 10-6: Standard Cost Variance Analysis–Direct Labor Standard Hours Allowed for the Actual Output, at Standard Rate ? hours × ? per hour = ? Actual Hours of Input, at Standard Rate ? hours × ? per hour = ? Actual Hours of Input, at Actual Rate ? hours × ? per hour = ? Direct labor variances: Labor efficiency variance ?    Labor rate variance ?    Labor spending variance ?    Exhibit 10-7: Standard Cost Variance Analysis–Variable Manufacturing Overhead Standard Hours Allowed for the Actual Output, at Standard Rate ? hours × ? per hour = ? Actual Hours of Input, at Standard Rate ? hours × ? per hour = ? Actual Hours of Input, at Actual Rate ? hours × ? per hour = ? Variable overhead variances: Variable overhead efficiency variance ?    Variable overhead rate variance ?    Variable overhead spending variance ?   

Explanation / Answer

SQSP                                                              AQSP                                                        AQAP

6,000 x$ 4                                                      6,500 x$ 4                                             6,500 x$ 3.80

= $ 24,000                                                         = $ 26,000                                               = $ 24,700

SQ = Standard Quantity required for actual Production= 3 x 2,000= 6,000 pounds

Exhibit 10-5Standard Cost Variance Analysis–Direct Materials:

Standard Quantity Allowed for the Actual Output, at Standard Price :

= 6,000 Pounds x $4= $24,000

Actual Quantity of Input, at Standard Price

= 6,500 Pounds x $4= $26,000

Actual Quantity of Input, at Actual Price

= 6,500 Pounds x $3.8 = $24,700

Direct materials variances:

Materials quantity variance

SQSP- AQSP= $24,000-$26,000= $2,000 U

Materials price variance


= AQSP-AQAP=$26,000-$24,700= $1,300 F

Materials spending variance

=SQSP-AQAP=$24,000-$24,700=$700 U

SRSH                                                     SRAH                                    ARAH

22 x 1,000                                             22 x 1,050                             21.60 x 1,050

=22,000                                                 =$23,100                               =$22,680

Exhibit 10-6: Standard Cost Variance Analysis–Direct Labor:

Standard Hours Allowed for the Actual Output, at Standard Rate

= 1,000 hrs x $22= $22,000

Actual Hours of Input, at Standard Rate

= 1,050 hrs x $22= $23,100

Actual Hours of Input, at Actual Rate

= 1,050 hrs x $21.60= $22,680

Direct labor variances:

Labor efficiency variance

=SRSH-SRAH

=$22,000-$23,100=$1,100 U

Labor rate variance

=SRAH-ARAH

=23,100-22,680=$420 U

Labor spending variance

=SRSH-ARAH

=$22,000-$22,680

=$680 U

Exhibit 10-7: Standard Cost Variance Analysis–Variable Manufacturing Overhead:

SRSH                                                     SRAH                                    ARAH

6 x 1,000                                               6 x 1,050                               6.8 x 1,050

=6,000                                                   =$6,300                              =$7,140

Standard Hours Allowed for the Actual Output, at Standard Rate

                                                                                            

= 1,000 hrs x $6= $6,000

Actual Hours of Input, at Standard Rate

= 1,050 hrs x $6= $6,300

Actual Hours of Input, at Actual Rate

= 1,050 hrs x $6.8= $7,140

Variable overhead variances:

Variable overhead efficiency variance

=SRSH-SRAH

=$6,000-$6,300=$300 U

Variable overhead rate variance

=SRAH-ARAH

=$6,300-$7,140

=$840 U

Variable overhead spending variance

=SRSH-ARAH

=$6,000-$7,140

=$1,140 U

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