Scribd Logo
Upload

Welcome to Scribd!

  • 6 views

    GVSG

    Uploaded by

    Bảo Ngọc
    1. There are variances in the standard costs for wood, direct labor, and variable overhead. The wood variance is favorable while the direct labor variance is unfavorable. The variable overhead variance is favorable. 2. Further analysis shows an unfavorable price variance for wood but a favorable material usage variance. The direct labor variances show a favorable labor rate variance but an unfavorable labor efficiency variance. The variable overhead variances show an unfavorable rate variance but a favorable efficiency variance. 3. For another period, the direct labor variances show a favorable total variance but an unfavorable labor rate variance and favorable labor efficiency variance. The variable overhead variances show a favorable rate variance and efficiency

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    GVSG

    Uploaded by

    Bảo Ngọc
    6 views8 pages
    1. There are variances in the standard costs for wood, direct labor, and variable overhead. The wood variance is favorable while the direct labor variance is unfavorable. The variable overhead variance is favorable. 2. Further analysis shows an unfavorable price variance for wood but a favorable material usage variance. The direct labor variances show a favorable labor rate variance but an unfavorable labor efficiency variance. The variable overhead variances show an unfavorable rate variance but a favorable efficiency variance. 3. For another period, the direct labor variances show a favorable total variance but an unfavorable labor rate variance and favorable labor efficiency variance. The variable overhead variances show a favorable rate variance and efficiency

    Original Description:

    ewfwfw

    Original Title

    gvsg

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1. There are variances in the standard costs for wood, direct labor, and variable overhead. The wood variance is favorable while the direct labor variance is unfavorable. The variable overhead variance is favorable. 2. Further analysis shows an unfavorable price variance for wood but a favorable material usage variance. The direct labor variances show a favorable labor rate variance but an unfavorable labor efficiency variance. The variable overhead variances show an unfavorable rate variance but a favorable efficiency variance. 3. For another period, the direct labor variances show a favorable total variance but an unfavorable labor rate variance and favorable labor efficiency variance. The variable overhead variances show a favorable rate variance and efficiency

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    6 views8 pages

    GVSG

    Uploaded by

    Bảo Ngọc
    1. There are variances in the standard costs for wood, direct labor, and variable overhead. The wood variance is favorable while the direct labor variance is unfavorable. The variable overhead variance is favorable. 2. Further analysis shows an unfavorable price variance for wood but a favorable material usage variance. The direct labor variances show a favorable labor rate variance but an unfavorable labor efficiency variance. The variable overhead variances show an unfavorable rate variance but a favorable efficiency variance. 3. For another period, the direct labor variances show a favorable total variance but an unfavorable labor rate variance and favorable labor efficiency variance. The variable overhead variances show a favorable rate variance and efficiency

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 8

    1.

    Standard cost for wood = 4000*2,5*1,8= 18000 $


    Variance=700 (F)
    => It is greater then the cost incurred.
    2.
    Price variance = 18700 - 1,8*11000= -1100 F
    Material variance =1,8*(11000-4000*2,5)= 1800 U
    1.
    Standard direct labor cost = 6000*0,2*9,5 = 11400 $
    Variance = 11500 - 11400= 100 $ (U)
    2.
    A labor rate variance = 11500 - 9,5*1150= 575 $ (U)
    A labor efficiency variance = 9,5*(1150-0,2*600 -475 $ (F)
    1.
    Standard variable overhead cost = 140000*0,04*2,8 = 15680 $
    Variance = 15950-15680= 270 $ (U)
    2.
    A variable overhead rate variance = 15950 - 5800*2,8= -290 $ (F)
    A variable overhead efficiency variance = 2,8*(5800-140000*0,04)= 560 $ (U)
    1.
    Standard direct labor cost = 20000*6/60*24= 48000 $
    Variance = 49300 - 48000 = 1300 $ (U)
    2.
    A labor rate variance = 2125*(49300/2125-24) -1700 $ (F)
    A labor efficiency variance = 24*(2125-20000*6/60)= 3000 $ (U)
    3.
    Variable overhead rate variance =2125*(39100/2125-16)= 5100 $ (U)
    Variable overhead efficiency variance=16*(2125-20000*6/60)= 2000 $ (U)
    1.

    1.
    Labor efficiency variance= Total labor spending variance - Labor rate variance
    12*(Actual hour-Standard hour)=330-(-150)
    12*(Actual hour-1,25*168)=480
    => Actual hour= 250 Hours
    2.
    Labor rate variance=Actual hour*(Actual rate-Standard rate)
    -150=250*(Actual rate-12)
    => Actual rate= 11.4 $
    The actual hourly rate paid ti employees for opening batches is 11,4$

    You might also like