Costs and Production Data Actual Standard Warning Don\'t show me this message ag
ID: 2427853 • Letter: C
Question
Costs and Production Data
Actual
Standard
Warning
Don't show me this message again for the assignment
Ok
Cancel
(a)
Warning
Don't show me this message again for the assignment
Ok
Cancel
Open Show Work
Show Solution
Show Answer
Link to Text
Link to Video
(b)
Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2014.Costs and Production Data
Actual
Standard
Raw materials unit cost $4.10 $3.98 Raw materials units used 11,300 10,560 Direct labor payroll $176,120 $172,431 Direct labor hours worked 14,800 15,300 Manufacturing overhead incurred $219,381 Manufacturing overhead applied $222,921 Machine hours expected to be used at normal capacity 43,000 Budgeted fixed overhead for June $68,800 Variable overhead rate per machine hour $3.10 Fixed overhead rate per machine hour $1.60Overhead is applied on the basis of standard machine hours. 3.10 hours of machine time are required for each direct labor hour. The jobs were sold for $487,000. Selling and administrative expenses were $42,300. Assume that the amount of raw materials purchased equaled the amount used.
Warning
Don't show me this message again for the assignment
Ok
Cancel
Explanation / Answer
Ans 1 Amount in $ Direct Material Price Variance=Actual Quantity x Actual Price - Actual Quantity x Standard Price (11300*4.1)-(11300*3.98) 1356 Unfavourable 1356 Direct Material quantity Variance:(Actual Quantity - Standard Quantity) x Standard Price (11300-10560)*3.98 2945.2 Unfavourable Total material variance 4301.2 Unfavourable Direct Labor Rate Variance: Actual Cost-Standard Cost of Actual Hours 176120-166796 9324 Unfavorable Standard cost per hour172431/15300 $11.27 Actual hours worked 14800 Standard Cost for actual hours $166,796.00 Direct Labor Effciency/Quantity Variance: Standard Rate(Actual Hours-Standard H0urs) 11.27*(14800-15300) -5635 Favourable Total Labour variance 3689 Unfavouable