Variance Analysis Insert a formula into each cell marked with a ?. Temple, Inc.
ID: 2794329 • Letter: V
Question
Variance Analysis Insert a formula into each cell marked with a ?. Temple, Inc. produces an area rug and incurs the following variable manufacturing costs: Std Qty Std Price/Rate Direct material (fabric) 12 yds $1.20 Direct labor 1.6 hours $16.00 Variable O/H (based on direct labor hours) 1.6 hours $4.00 Standard Cost per Unit: Standard Cost Direct Material $14.40 Direct Labor $25.60 Variable O/H $6.40 Total Std Cost per Unit $46.40 Temple incurred the following variable production costs in October: Units produced 400 Actual Qty Actual Price/Rate Actual Cost Direct materials 4905 yds $1.05 per yd $12.60 Direct labor 625 hours $17.20 per hour $27.52 Variable O/H 625 hours $4.80 per hour $7.68 Total Actual cost $47.80 Variance Calculations Total Spending Variance Standard - Actual = Variance $- Direct Material Variances Spending Standard - Actual = Variance $- Price Difference in price x Actual Qty = Variance Quantity Difference in quantity x Standard Price = Variance ? ? ? Direct Labor Variances Spending Standard - Actual = Variance ? ? ? Rate Difference in price x Actual Qty = Variance ? ? ? Efficiency Difference in quantity x Standard Price = Variance ? ? ? Variable O/H Variances Spending Standard - Actual = Variance ? ? ? Rate Difference in price x Actual Qty = Variance ? ? ? Efficiency Difference in quantity x Standard Price = Variance ? ? ? Could you please help answer these questions Variance Analysis Insert a formula into each cell marked with a ?. Temple, Inc. produces an area rug and incurs the following variable manufacturing costs: Std Qty Std Price/Rate Direct material (fabric) 12 yds $1.20 Direct labor 1.6 hours $16.00 Variable O/H (based on direct labor hours) 1.6 hours $4.00 Standard Cost per Unit: Standard Cost Direct Material $14.40 Direct Labor $25.60 Variable O/H $6.40 Total Std Cost per Unit $46.40 Temple incurred the following variable production costs in October: Units produced 400 Actual Qty Actual Price/Rate Actual Cost Direct materials 4905 yds $1.05 per yd $12.60 Direct labor 625 hours $17.20 per hour $27.52 Variable O/H 625 hours $4.80 per hour $7.68 Total Actual cost $47.80 Variance Calculations Total Spending Variance Standard - Actual = Variance $- Direct Material Variances Spending Standard - Actual = Variance $- Price Difference in price x Actual Qty = Variance Quantity Difference in quantity x Standard Price = Variance ? ? ? Direct Labor Variances Spending Standard - Actual = Variance ? ? ? Rate Difference in price x Actual Qty = Variance ? ? ? Efficiency Difference in quantity x Standard Price = Variance ? ? ? Variable O/H Variances Spending Standard - Actual = Variance ? ? ? Rate Difference in price x Actual Qty = Variance ? ? ? Efficiency Difference in quantity x Standard Price = Variance ? ? ? Could you please help answer these questionsExplanation / Answer
Total Spending Variances
Variance = Standard - Actual
=18560-19120
=560 A
Direct Material Variance
Total Material Spending Variance = (SQ*SP)-(AQ*AP)
=5760-5150.25
=609.75F
Material Price Variance = (AQ*SP)-(AQ*AP)
=5886-5150.25
=735.75F
Material Quantity Variance =(SQ*SP)-(AQ*SP)
=5760-5886
=126A
LABOUR VARIANCES
Total Labour Spending Variance = (SH*SR)-(AH*AR)
=10240-10750
=510A
Labout Rate Variance =(AH*SR)-(AH*AR)
=10000-10750
=750A
Labour Efficiency Variance =(SH*SR) - (AH*SR)
=10240-10000
=240F
VARIABLE OVERHEAD VARIANCES
Total Variable Spending Variance = Standard - Actual
=2560-3000
=440A
Variable overhead Rate Variance = (AH*SR)-ACTUAL
=2500-3000
=500A
Varriable Overhead Efficiency Variance = Standard - (AH*SR)
=2560-2500
=60F
Standard Actual 400*46.40 400*47.80 =18560 =19120Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.