Standard quantity or hours per unit

Standard price or rate

Standard cost per unit

Direct labor cost

Material was used in the production
Required:
Direct
1. For materials purchase
direct materials:
a. Compute the standard price per pound for materials.
Total materials spending variance = Materials quantity variance + Materials price varianc
Materials price variance
Actual price
Materials price variance = (AQ x AP) - (AQ x SP)
Standard price per pound
b. Compute the standard quantity allowed for materials for the month’s production.
Materials quantity variance = (AQ × SP) − (SQ × SP)
Standard quantity allowed for materials
c. Compute the standard quantity of materials allowed per unit of product.
Standard quantity per unit
2. For direct labor:
a. Compute the actual direct labor cost per hour for the month.
Standard hours
Labor efficiency variance = (AH x SR) - (SH x SR)
Actual hours
Actual direct labor cost per hour
b. Compute the labor rate variance
Labor rate variance = (AH x AR) - (AH x SR)
 Direct Materials Direct Labor
? pounds 2.5 hours
? per pound $9.00 per hour
? $22.50

$28,500
1,400 units
6,000 pounds Cost $16,500

($300) F
-$1,500 F
$2.75

$3.00
s production.
$1,200 U
5,600 pounds

4 pounds

3,500 hours
-$4,500 F
3,000 hours
$10 per hour

$1,500 U
 Standard Quantity or Hours
Direct materials ?
Direct labor ?
Variable manufacturing overhead ?
Total standard cost per kit

Materials Used
Total standard cost*. ?
Actual costs incurred $10,000
Materials price variance ?
Materials quantity variance $600 U
Labor rate variance
Labor efficiency variance
Variable overhead rate variance
Variable overhead efficiency variance
*For the month’s production.
1. What was the total standard cost of the materials used during August?
Total standard cost for kits $21,000
Total standard cost of the materials used $11,400
2. How many yards of material are required at standard per kit?
Standard cost per kit $22.8
Yards per kits 3.8
3. What was the materials price variance for August if there were no beginning or ending inventories of materials?
Actual cost of material used $10,000
Standard cost of material used $11,400
Total variance -$1,400 F
Materials price variances -$2,000 F
4. What is the standard direct labor rate per hour?
Standard manufacturing variable overhead cost $1,600
Standard manufacturing variable overhead rate per direct labor- $2
Standard direct labor-hours for the month 800
Standard direct labor rate per hour $10
5. What was the labor rate variance for August? The labor efficiency variance?
Actual cost per kit produced $42.14
Total actual cost of production $21,070
Actual cost of direct labor $9,450
Labor rate variance $450 U
Labor efficiency variance $1,000 U
6. What was the variable overhead rate variance for August? The variable overhead efficiency variance?
Variable manufacturing overhead rate variance -$180 F
Variable overhead efficiency variance $200 U
7. Complete the standard cost card for one kit shown at the beginning of the problem
Standard Quantity or Hours
Direct materials 3.8 yards
Direct labor 1.6 hours
Variable manufacturing overhead 1.6 hours
Total standard cost per kit
 Standard Price or Rate Standard Cost
$6 per yard $?
? ?
$2 per direct labor-hour?
$42

Direct Labor Variable Manufacturing Overhead

$8,000 $1,600
? $1,620

?
?
?
?

ending inventories of materials?

ad efficiency variance?
Standard Price or Rate Standard Cost
$6 per yard $22.80
$10 per hour $16
$2 per direct labor-hour $3.20
$42
Kits were manufactured and sold 500
Actual direct labor-hours 900
Difference between standard and actual cost per kit produced during A $0.14 U
Standard costs
Total Per Unit of Product
Direct materials $35,490 $18.20
Direct labor $7,020 3.60
Variable manufacturing overhead (based on direct labor-hours) $2,340 1.20
$23.00
Actual costs
Total Per Unit of Product
Direct materials (6,000 yards) $36,000 $18.00
Direct labor $7,600 3.80
Variable manufacturing overhead $3,800 1.90
$23.70

Required: Compute the following variances for April:

1. The materials price and quantity variances.
Actual direct materials price $6 per yard
Standard materials 5,460 yards
Standard materials
Materials price price = (AQ x AP) - (AQ x SP)
variances $6.5 per yard
-$3,000 F
Standard quantity variances = (AQ x SP) - (SQ x SP)
Materials quantity 5,600 yards
$2,600 U
2. The labor rate and efficiency variances.
Actual direct labor rate $10 per hour
Standard direct labor rate $9 per hour
Labor rate variance = (AH × AR) − (AH × SR) $760 U
Labor efficiency variance = (AH × SR) − (SH × SR) -$180 F
3. The variable manufacturing overhead rate and efficiency variances.
Actual Variable Manufacturing Overhead rate $5 per hour
Standard Variable Manufacturing Overhead rate $3 per hour
Variable manufacturing overhead rate variance = (AH × AR) − (AH $1,520 U
Variable overhead efficiency variance = (AH × SR) − (SH × SR) -$60 F
https://homework.study.com/explanation/helix-company-produces-several-products-in-its-factory-inciuding-a-karate-robe-the-c
nit of Product Standard direct labor-hour 780 hours
Standard units 1,950 robes
yards of material required 2.80

nit of Product Actual direct labor-hours 760 hours

Actual units 2,000 robes
actory-inciuding-a-karate-robe-the-company-uses-a-standard-cost-system-to-assist-in-the-control-of-costs-according-to-the-standards-that-
-according-to-the-standards-that-have-been-se.html
 Raw Material
Product X342 Y561
Alpha8 1.80 kilos 2.00
Zeta9 3.00 kilos 4.50

Material Purchases Purchase Cost

X342 14,000 kilos $51,800
Y561 15,000 liters $19,500

Sintering Finishing
Standard labor rate $20.00 $19.00 per hour
Actual direct labor-hours 1,200 2,850
Total labor cost $27,000 $59,850

Required:
1. Prepare a standard cost card for each product, showing the standard cost of direct materials and direct labor.
Standard quantity or hours Standard price or rate
Alpha8
Direct materials - X342 1.80 kilos $3.50
Direct materials - Y561 2.00 liters $1.40
Direct labor - Sintering 0.20 hours $20.00
Direct labor - Finishing 0.8 hours $19.00
Total
Zeta9
Direct materials - X342 3.00 kilos $3.50
Direct materials - Y561 4.50 liters $1.40
Direct labor - Sintering 0.35 hours $20.00
Direct labor - Finishing 0.9 hours $19.00
Total
2. Compute the materials quantity and price variances for each material.
Direct Materials Variances - Materials X342
Actual price $3.70
Actual quantity 14,000
Materials price variances = (AQ x AP) - (AQ x SP) $2,800 U
Standard quantity 8,700
Actual quantity 8,500
Materials quantity variances = (AQ x SP) - (SQ x SP) -$700 F
Direct Materials Variances - Materials Y561
Actual price $1.30
Actual quantity 15,000
Materials price variances = (AQ x AP) - (AQ x SP) -$1,500 F
Standard quantity 12,000
Actual quantity 13,000
Materials quantity variances = (AQ x SP) - (SQ x SP) $1,400 U
3. Compute the direct labor efficiency and rate variances for each operation.
Direct Labor Variances - Sintering
Standard hours 11.00
Labor efficiency variance = (AH × SR) − (SH × SR) $23,780 U
Actual direct labor rate $22.50
Labor rate variance = (AH × AR) − (AH × SR) $3,000 U
Direct Labor Variances - Finishing
Standard hours 32.30
Labor efficiency variance = (AH × SR) − (SH × SR) $53,536 U
Actual direct labor rate $21.00
Labor rate variance = (AH × AR) − (AH × SR) $5,700 U
al Standard Labor Time
Y561 Sintering Finishing
liters 0.20 hours 0.8 hours
liters 0.35 hours 0.9 hours

Standard Price Used in Production

$3.50 per kilo 8,500 kilos
$1.40 per liter 13,000 liters

Alpha8s Zeta9s
Actual units 1,500 2,000

materials and direct labor.

d price or rate Standard cost

per kilo $6.30

per liter $2.80
per hour $4.00
per hour $15.20
$28.30

per kilo $10.50

per liter $6.30
per hour $7.00
per hour $17.10
$40.90