Indicate whether each of the following is favorable or unfavorable. The first on
ID: 2363689 • Letter: I
Question
Indicate whether each of the following is favorable or unfavorable. The first one has been done as an example. Item to classify Standard Actual Type of Variance Labor cost $10.00 per hour $9.60 per hour Favorable Labor usage 61,000 hours 61,800 hours Fixed cost spending $400,000 $390,000 Fixed cost per unit(volume) $3.20 per unit $3.16 per unit Sales volume 40,000 units 42,000 units Sales price $3.60 per unit $3.63 per unit Materials cost $2.90 per pound $3.00 per pound Material usage 91,000 pounds 90,000 poundsExplanation / Answer
Item to classify Standard Actual Type of Variance Labor cost $10.00 $9.60 Favorable Labor usage 61,000 61,800 UNFAVORABLE Fixed cost spending $400,000 $390,000 FAVORABLE Fixed cost per unit(volume) $3.20 $3.16 FAVORABLE Sales volume 40,000 42,000 units FAVORABLE Sales price $3.60 $3.63 Favorable Materials cost $2.90 $3.00 Unfavorable Material usage 91,000 90,000 pounds Favorable