Determine the price variance and quantity variance

Assignment Help Cost Accounting
Reference no: EM13527689

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

Eastern Polymers, Inc., processes a base chemical into plastic.Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,800 units of product were as follows:


Standard Costs Actual Costs
Direct materials 8,800 lbs. at $4.70 8,700 lbs. at $4.50
Direct labor 1,700 hrs. at $17.50 1,740 hrs. at $17.80
Factory overhead Rates per direct labor hr.,

based on 100% of normal

capacity of 1,770 direct

labor hrs.:


Variable cost, $3.50 $5,890 variable cost


Fixed cost, $5.50 $9,735 fixed cost

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the price variance, quantity variance, and total direct materials cost variance. Use the minus sign to enter favorable variances as negative numbers.

Price variance: $ SelectFavorableUnfavorableItem 2
Quantity variance: $ SelectFavorableUnfavorableItem 4
Total direct materials cost variance: $ SelectFavorableUnfavorableItem 6

b. Determine the rate variance, time variance, and total direct labor cost variance. Use the minus sign to enter favorable variances as negative numbers.

Rate variance: $ SelectFavorableUnfavorableItem 8
Time variance: $ SelectFavorableUnfavorableItem 10
Total direct labor cost variance: $ SelectFavorableUnfavorableItem 12

c. Determine variable factory overheadControllable Variance, the fixed factory overheadvolume variance, and total factory overhead cost variance. Use the minus sign to enter favorable variances as negative numbers.

Variable factory overhead controllable variance: $ SelectFavorableUnfavorableItem 14
Fixed factory overhead volume variance: $ SelectFavorableUnfavorableItem 16
Total factory overhead cost variance: $ SelectFavorableUnfavorableItem 18

 

Reference no: EM13527689

Questions Cloud

Find what horizontal distance did the froghopper cover : The froghopper, Philaenus spumarius, holds the world record for insect jumps. What horizontal distance did the froghopper cover for this world-record leap
Balance sheet for the baggett company : Prepare a December 31, 2007 balance sheet for the Baggett Company - compute the debt ratio.
Calculate the force required to pull a copper ball : Calculate the force required to pull a copper ball of radius 3.00 cm upward through a fluid at the constant speed 8.00 cm/s
Find which stone lands farther away from the building : Two stones are launched from the top of a tall building. One stoneis thrown in a direction 30.0^\circ above the horizontal with aspeed of 16.0 \rm {m/s}; Which stone lands farther away from the building
Determine the price variance and quantity variance : Determine the price variance, quantity variance, and total direct materials cost variance and determine the rate variance, time variance, and total direct labor cost variance.
How fast should the car be traveling just as it leaves cliff : A 10000 N car comes to a bridge during a storm and finds the bridge washed out. How fast should the car be traveling just as it leaves the cliff in order to clear the river and land safely on the opposite side
Morphology and photosynthetic activity : Compare and contrast in terms of morphology and photosynthetic activity: seaweeds vs. marine vascular plants.
What will operating income be : the part from an outside source can be used to manufacture another product that can be sold for $12,000 profit. If Harvey Automobiles makes the part, what will its operating income be?
Find the magnitude and direction of the total electric field : Two point charges are placed on the x-axis. Charge Q1=+3 microC at x==-6cm and charge Q2=+3microC at x=+6cm. Find the magnitude and direction of the total electric field at point P

Reviews

Write a Review

 

Cost Accounting Questions & Answers

  Discuss any trends in the net cash provided in operating

discuss any trends in the net cash provided in operating investing and financing activities for home depot and lowes in

  Provide evidence that the system is operating correctly

Included in the Acceptance Testing will be verification of the system outputs, ie reports etc. What types of activities could Andrew include in the Acceptance Test to provide evidence that the system is operating correctly?

  Difficulties in financial statement analysis

Many assets are presented at historical cost. Why does this accounting principle cause difficulties in financial statement analysis?

  Identify balance sheet accounts that kate will likely need

Identify the balance sheet accounts that Kate will likely need to record the transactions needed to open her business. Indicate whether the normal balance of each account is a debit or a credit.

  Assets of the partnership

Assets of the partnership were overvalued instantly prior to MaryAnn's investment.

  Prepare a cash disbursement budget for each

Utilities are to be paid every other month at the amount of $320 per month. The first payment is to be made in February.

  What should be amount of direct materials available for use

Stephenson Company's computer system recently crashed, erasing much of the Company's financial data. The following accounting information was discovered soon afterwards on the CFO's back-up computer disk. Cost of Goods Sold $439,800

  The hilltop corporation is considering as of 1108 the

the hilltop corporation is considering as of 1108 the replacement of an old machine that is currently being used. the

  Qthe major impact of third industrial revolution in

qthe major impact of third industrial revolution in agricultural equipment manufacturing value chain in the upcoming

  Question pemberton company acquired all of the liabilities

question pemberton company acquired all of the liabilities and assets of the samuelson corporation for cash on 1st

  What kind of fraud does the product apply

Will you give me some insight about the fraud prevention products online trading sites use and To what kind of fraud does the product apply?

  What amount does fenland need to invest each year

what lump sum at employment date would make her indifferent between the two options and  Reliable would recognize gross profit and What amount does Fenland need to invest each year?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd