Revise the data in your worksheet to reflect the results for the subsequent peri

Question

Revise the data in your worksheet to reflect the results for the subsequent period as shown below:

16

What is the materials quantity variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

What is the materials price variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

What is labor efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

What is labor rate variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

What is variable overhead efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

What is variable overhead rate variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Chapter 8: Applying Excel 2 3 Data 4 Exhibit 8-8: Standard Cost Card 5 Inputs Standard Quantity Standard Price 6 Direct materials 3.0 pounds $4.00 7 Direct labor 0.50 hours $22.00 per hour 8 Variable manufacturing overhead 0.50 hours $6.00 per hour 9 10 Actual results: 11     Actual output 1,930 units 12     Actual variable manufacturing overhead cost $5,133 13    Actual Quantity Actual price 14     Actual direct materials cost 5,550 pounds $3.8 pounds 15     Actual direct labor cost 870 hours $22.4 per hour

16

a-1.

What is the materials quantity variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

a-2.

What is the materials price variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

b-1.

What is labor efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

b-2.

What is labor rate variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

c-1.

What is variable overhead efficiency variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

c-2.

What is variable overhead rate variance? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Explanation / Answer

a-1 Materials quantity variance = 4*(5550-1930*3)= 960 F a-2 Materials price variance = 5550*(3.8-4)= 1110 F b-1 Labor efficiency variance = 22*(870-1930*0.5)= 2090 F b-2 Labor rate variance = 870*(22.4-22)= 348 U c-1 Variable overhead efficiency variance = 6*(870-1930*0.5)= 570 F c-2 Variable overhead rate variance = 5133-(870*6)= 87 F

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