How to do a and d ? Hamper\'s Florals planned to make 750 arrangements but actua
ID: 2485550 • Letter: H
Question
How to do a and d ? Hamper's Florals planned to make 750 arrangements but actually made 790. Determine the total flexible budget materials variance and indicate whether it is favorable (F) or unfavorable(U). Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U) Determine the materials usage variance and indicate whether it is favorable (F) or unfavorable (U) Confirm the accuracy of Requirement a, b and c by showing that the sum of the price and usage variances equals the total variance.Explanation / Answer
a. Total flexible budget material variance =Standard cost-actual cost
=(Standard qey*standard price)-(Actual quantity* Actualprice)
=(790*8.0*0.50)-(790*8.25*0.48)
=3160-3128.4=31.6(favorable)
d.
Actual Production
790.00
Standard Matrerials(790*8.0)
6390.00
Actual Matrerials(790*8.250)
6517.50
Material Price Variance
(Standard Price - Actual Price)*Actual Quantity
Material Price Variance
(.50-.48)6517.50
Material Price Variance (F)
130.35
Material Usage Variance
(Standard Qty - Actual Qty)*Standard Price
Material Usage Variance
(6390- 6517.50).50
Material Usage Variance(U)
-63.75
Materials Variance
Standard Cost - Actual Cost
Materials Variance
3195- 3128.4
Materials Variance(F)
66.6
Material Price + Material Usage = Material Variance
130.25 - 63.75 = 66.6
Actual Production
790.00
Standard Matrerials(790*8.0)
6390.00
Actual Matrerials(790*8.250)
6517.50
Material Price Variance
(Standard Price - Actual Price)*Actual Quantity
Material Price Variance
(.50-.48)6517.50
Material Price Variance (F)
130.35
Material Usage Variance
(Standard Qty - Actual Qty)*Standard Price
Material Usage Variance
(6390- 6517.50).50
Material Usage Variance(U)
-63.75
Materials Variance
Standard Cost - Actual Cost
Materials Variance
3195- 3128.4
Materials Variance(F)
66.6
Material Price + Material Usage = Material Variance
130.25 - 63.75 = 66.6
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