ACME Inc. has the following standards to manufacture one Roadrunner trap: Materi

Question

ACME Inc. has the following standards to manufacture one Roadrunner trap: Material: 1.5 pounds per trap at $4.00 per pound Labor: 1.5 standard hours per trap at $12.00 per direct labor hour Overhead: 1.5 standard hours per trap at $3.00 per direct labor hour Last week 2,800 pounds of material were purchased for $10,920. 1,700 pounds of material were used to make 1,000 Roadrunner ACME traps. 1,550 direct labor hours were worked to produce the 1,000 traps at a total labor cost of $18,910. $5,115 was spent for variable manufacturing overhead. 150 Roadrunners were caught and coyotes paid $50 for each of the roadrunners caught. Calculate each of the 6 variances (show your work) Materials variances (price and quantity) Labor variances (rate and efficiency) Overhead Variances (spending and efficiency)

Explanation / Answer

Material Price Vairance = Actual Qunatity x (Actual Price - Standard Price) = 2,800 X ($3.90 - 4.00) -$280 F Material Quantity Variance = Standard Price x (Actual Qty - Standard Qty) = $4.00 x (1,700 - 1,500) $800 U Labor Rate variance = Actual Hours x (Actual rate - Standard Rate) = 1,550 x ($12.20 - 12.00) $310 U Labor Efficiency Variance = Standard Rate x (Actual Hours - Standard Rate) = $12.00 X (1,550 - 1,500) $600 U Overhead Rate Variance = Actual Hours x (Actual rate - Standard Rate) = 1,550 x ($3.3 - 3.00) $465 U Overhead Efficiency Variance = Standard Rate x (Actual Hours - Standard Rate) = $3.00 X (1,550 - 1,500) $150 U

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.