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Take Test Sect httpslibblearnna u.edu weappsassestment take iaurkhjsp?course-assessment, id·282 62. 1 &cours; l Apps MyNAU Porta: G Soived Celculatein Blsck Board O Chase Online-My A Khan/ Economics du QUESTION 4 The standards for one carton of Wonder Wax are Direct materials Direct labor 4 Ibs. a $2.55 6 hrs a S5.25 Variable overhead (bascd on dircet labor hours) 6hrs. a s3.40 During the week ended December 4, the tolilowing activity took place 4,600 tbs of raw material were purchased for inventory at a cost of 52 63 per pound 1050 cartons of finished product were produced 4 225 1bs of raw material were used 6 140 labor hours were worked at a total cost of $33 463 $20,569 actual variable overhead costs were incurred Calculate each of the following variances (a Price variance for raw materials purchased b) Raw materia's usage variance (c ) Direct labor rate variance (d ) Direct labor efficiency vanance (e.) Variable overhead spending variance. (f ) Variable overhead efficiency variance TTT Arial , 3112pt) 'T.E.E. Click Save and Submit to save and submit, Click Save All Ansuers to save all Type here to searchExplanation / Answer
(a) Price variance for raw material purchased = Actual quantity purchased ( Std Price - Actual Price)
4600 ( 2.55 - 2.63) = 368 Unfavorable
(b) Material Usage variance = Std Price ( Standard Quantity - Actual Quantity)
2.55 ( 4200 - 4225) = 63.75 Unfavorable
(c) Labor rate variance = Actual hours ( Std price - Actual price)
= 6140 ( 5.25 - 5.45) = 1228 Unfavorable
(d) Labor Efficiency variance = Std rate ( Std Hours - Actual Hours )
= 5.25 ( 6300 - 6140) = 840 Favorable
(e) Variable Overhead variance = VOH rate per hour * Actual hours - Actual variable overhead
= 3.4 * 6140 - 20569 = 20876 - 20569 = 307 Favorable
(f) Variable OH Efficiency variance = VOH rate per Unit * Actual Units - VOH rate per hour * Actual hours
= 20.4 * 1050 - 3.4 * 6140 = 544 Favorable
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