Comprehensive Variance Analysis : Decision Focus Transactions during the month o

Question

Comprehensive Variance Analysis: Decision Focus

Transactions during the month of June were as follows:

Required:

A.  Calculate all material, labor, variable overhead, and fixed overhead variances. Enter all amounts as positive numbers. If an amount is neither favorable nor unfavorable, select "Neither" from the dropdown and enter '0' in the amount box. Do not round your intermediate calculations.

Material Plastic Molding Direct Material price variance: $ $ Direct Material usage variance: $ $ Labor Direct labor rate variance: $ Direct labor efficiency variance: $ Variable Overhead Variable overhead spending variance: $ Variable overhead efficiency variance: $ Fixed Overhead Variances Fixed overhead spending variance: $ Fixed overhead volume variance: $ Plastic 10 pounds at $4. 50 per pound Molding 3 feet at $3. 00 per foot Direct labor 4 hours at $6. 00 per hour Variable overhead $3 per direct labor hour Fixed overhead $55,000 per period

Explanation / Answer

Material Plastic Molding Direct Material price variance: $ 9250 F $ 5000 U Direct Material usage variance: $ 22500 U $ 12000 F Labor Direct labor rate variance: $0 Direct labor efficiency variance: $ 3000 F Variable Overhead Variable overhead spending variance: $ 3625 U Variable overhead efficiency variance: $ 1500 U Fixed Overhead Variances Fixed overhead spending variance: $ 1125 F Fixed overhead volume variance: $0 WORKING NOTE 1) Direct Material price variance of Plastic: =(SR-AR)*AQ Direct Material price variance of Plastic: =(4.5-4.45)*185000 Direct Material price variance of Plastic: = $ 9250 Favorable 2) Direct Material price variance of Molding: =(SR-AR)*AQ Direct Material price variance of Molding: =(3-3.10)*50000 Direct Material price variance of Molding: =$ 5000 Unfavorable 3) Direct Material Usage variance of Plastic: =(SQ-AQ)*SR Direct Material Usage variance of Plastic: =(180000-185000)*4.50 Direct Material Usage variance of Plastic: =$ 22500 Unfavorable 4) Direct Material Usage variance of Molding: =(SR-AR)*AQ Direct Material Usage variance of Molding: =(54000-50000)*3 Direct Material Usage variance of Molding: =$ 12000 favorable 5) Direct labor rate variance: = (SR-AR)*AH Direct labor rate variance: = 72500*6-435000 Direct labor rate variance: = 0 6) Direct labor efficiency variance: = (SH-AH)*SR Direct labor efficiency variance: = (72000-72500)*6 Direct labor efficiency variance: = $ 3000 Unfavorable 7) Variable overhead spending variance: = (SR-AR)*AH Variable overhead spending variance: = 72500*3-221125 Variable overhead spending variance: = $ 3625 Unfavorable 8) Variable overhead efficiency variance: = (SH-AH)*SR Variable overhead efficiency variance: = (72000-72500)*3 Variable overhead efficiency variance: = $ 1500 Unfavorable 9) Fixed overheadspending variance: = Budgeted -Actual Overhead Fixed overhead spending variance: = 55000 -53875 Fixed overhead spending variance: = $ 1125 Favorable 10) Fixed overhead efficiency variance: = Standard - Budgeted Fixed overhead efficiency variance: = 0

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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