Accounting-Variance\'s. Rocky Mountain Chairs Rocky Mountain Chairs is a private
ID: 2529319 • Letter: A
Question
Accounting-Variance's.
Rocky Mountain Chairs Rocky Mountain Chairs is a privately held furniture manufacturer. For April 2019, Rocky Mountain had the following standard cost for a wicker chair. Direct Materials: Standard Cost per Chair $10.00 $17.50 Wicker 2 square yards 10 bands @$5.00 per sq. yd. @$1.75 per band Bands Direct Labor: Assembly Finishing hour 1 hour @$10 per hour @$7.50 per hour $5.00 $7.50 lo The following data were compiled regarding actual performance for the month of April: Actual chairs produced 2,000 Actual wicker purchased and used 3,700 sq. yds . @ $5.10 per sq. yd. 18,30 .19 Actual Bands purchased and used 20,075 @$1.70 per band 34,127,5 Actual assembly labor 900 hours @ $9.80 per hour 6, cao Actual finishing labor 2,500 hours @ $7.00 per hour 1,500 Required: 1. Calculate the price Variance and Quantity Variance for wicker. 2. Calculate the price Variance and Quantity Variance for bands. 3. Calculate the price Variance and Quantity Variance for assembly labor. 4. Calculate the Price Variance and Quantity Variance for finishing labor. Ab Acts my somic Ad SoExplanation / Answer
Answer:
1
Calculate the price and quantity variance of for Wicker
Direct material Price and quantity variance
Actual material Cost
Projected Material Cost
Standard Material Cost
Actual
quantity
x
Actual
Price
Actual
quantity
x
Standard
Price
Standard
quantity
x
Standard
Price
3700
x
5.1
3700
5
4000
5
(2000*2)
18870
18500
20000
370
Unfavorable
1500
favorable
Direct material price Variance
Direct material Quantity Variance
________________________________________
2
Calculate the price and quantity variance of for Band
Direct material Price and quantity variance
Actual material Cost
Projected Material Cost
Standard Material Cost
Actual
quantity
x
Actual
Price
Actual
quantity
x
Standard
Price
Standard
quantity
x
Standard
Price
20075
x
1.7
20075
1.75
20000
1.75
(2000*10)
34127.5
35131.25
35000
1003.75
favorable
131.25
favorable
Direct material price Variance
Direct material Quantity Variance
________________________________________
3
Calculate the price and quantity variance of for Assembly Labor
Direct Labor price and quantity variance variance
Actual Labor Cost
Projected Labor Cost
Standard Labor Cost
Actual
Hours
x
Actual
rate
Actual
Hours
x
Standard
rate
Standard
Hour
x
Standard
rate
900
x
9.8
900
10
1000
10
(2000*1/2)
8820
9000
10000
180
favorable
1000
favorable
Direct Labor Price Variance
Direct Quantiy Variance
_______________________________________
4
Calculate the price and quantity variance of for Finishing labor
Direct Labor price and quantity variance variance
Actual Labor Cost
Projected Labor Cost
Standard Labor Cost
Actual
Hours
x
Actual
rate
Actual
Hours
x
Standard
rate
Standard
Hour
x
Standard
rate
2500
x
7
2500
7.5
2000
7.5
(2000*1)
17500
18750
15000
1250
favorable
3750
Unfavorable
Direct Labor price Variance
Labor quantity Variance
Direct material Price and quantity variance
Actual material Cost
Projected Material Cost
Standard Material Cost
Actual
quantity
x
Actual
Price
Actual
quantity
x
Standard
Price
Standard
quantity
x
Standard
Price
3700
x
5.1
3700
5
4000
5
(2000*2)
18870
18500
20000
370
Unfavorable
1500
favorable
Direct material price Variance
Direct material Quantity Variance