Standard Cost Profile Lab Treatment SU #12 Expected Treatments = 1,000 Quantity

Question

Standard Cost Profile

Lab Treatment SU #12

Expected Treatments = 1,000

                              Quantity        Quantity       Unit        Variable     Average          Average

Resource         Variable            Fixed        Cost            Cost      Fixed Cost        Total Cost

Labor                   0.80                0.80        $ 16.00     $ 12.80        $ 12.80              $ 25.60

Supplies               7.00                0                  1.10          7.70                  0                  7.70

                                                                                   $ 20.50      $      12.80               33.30

Actual Month Cost

Lab Treatment SU #12

Actual Treatments = 1,100

                              Quantity            Unit             Total

Resource            Used               Cost            Cost    

Labor                   1,600         $ 17.00         $ 27,200

Supplies               7,500              1.00              7,500

                                                                    $ 34,700

Calculate the following variances:

1. Efficiency Variance for Labor.

Explanation / Answer

Efficiency Variance for Labor = (Actual hours - Standard hours) * standard rate
= (1600 - (1100/0.8)) * $16
= (1600 - 1375) * $16
= $ 3600 unfavorable

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

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