Quesba User
4 Votes
14 Answers
Answer-
A.
1. Total Material Variance:
(Actual Quanity x Actual Price) - (Standard Quantity x Standard Price)
( AQ x AP ) - ( SQ x SP )
= 11200 x 8 yards = 89,600
= (90,500 x $ 4.15) - (89,600 x 4.40)
= ($375,575) - ($394,240)
= $ 18,665
2. Material Price Variance:
(Actual Quantity x Actual Price) - (Actual Quanity x Standard Price)
(AQ x AP ) - (AQ x SP)
= (90,500 x $ 4.15) - (90,500 x 4.40)
= ( $ 375575) - ($ 398200)
= $ 22,625
3. Material Quantity Variance:
(Actual Quatityx Standard Price) - ( Standard Quantity x Standard Price)
(AQ x SP) - (SQ x SP)
= (90,500 x $ 4.40 ) - (89,600 x 4.40)
= ($ 398,200) - ($ 394,240)
= $ 3,960
B.
1.Total Labour Variance :
(Actual Hour x Actual Rate) - (Standard Hour x Standard Rate)
(AH x AR) - (SH x SR)
= 11,200 x 1.20 = 13,440
= ( 14,200 x 14.10 ) - ( 13,440 x 13.40)
= ($ 200,220) - ($ 180,096)
= $ 20,124
2. Labour Price Variance:
(Actual Hour x Actual Rate) - (Actual Hour x standard Rate)
(AH x AR) - (AH x SR)
= ( 14,200 x 14.10 ) - ( 14,200 x 13.40 )
= ( 200,220) - ( 190,280)
= $ 9,940
3. Labour Quantity Variance:
( Actual Hour x Standard Rate) - ( Standard Hour x Standard Rate)
(AH x SR) - (SH x SR)
= (14300 x 13.40) - (13440 x 13.40)
= (191620) - (180096)
=$ 11,524
C.
1. Total Overhead Variance:
(Actual Overhead) - (Overhead Applied)
= ( 49,000 + 37,000) - ( 13,440 x 6.10)
= ( 86000) - ( 81984)
= 4,016
2. Overhead Controllable Variance:
(Actual Overhead) - (Overhead Budgeted)
= (49,000 + 37000) - [(13,440 x 2.60) + 49000 ]
= ( 86000 ) - ( 83944)
= 2,056
3. Overhead Volume Variance:
Fixed Overhead Rate x ( Normal Capacity hour - Standard hour Allowed )
$ 3.50 hr x ( 14,000 - 13,440 )
= 1,960...