Follow instructions on screen? . ACC 219 Chapter 10 Help Save & Exit Submit s a
ID: 2562761 • Letter: F
Question
Follow instructions on screen?
. ACC 219 Chapter 10 Help Save & Exit Submit s a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below 10 Standard Quantity Standard Price Standard or Hours 4.6 pounds 0.2 hours or Rate Cost Direct materials Direct labor s 2. 5a per $18.80 per hour $ 3.60 During the most recent month, the following activity was recorded a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound b All of the material purchased was used to produce 4.000 units of Zoom c. 750 hours of direct labor time were recorded at a total labor cost of $14.925 . Compute the materials price and quantity variances for the month 2 Compute the labor rate and efficiency variances for the month (For all requirements, Indicate the effect of each variance by selecting "FY for favorable, ."U" for unfavorable. mnd "None" for no 11 2 Next > Type here toExplanation / Answer
Standard Qty = Standard Qty for actual Production
= Standard Qty required per unit x Actual Production
=4.6 pounds x 4,000 units
=18,400 pounds
Standard hrs = Standard hrs for actual Production
= Standard hrs required per unit x Actual Production
=0.2 hrs x 4,000 units
=800 hrs
Direct Material Price variance=( Actual Qty x actual Price)- ( Actual Qty x standard Price)
=(20,000 x $2.35)- (20,000 x $2.50)
= $ 47,000 - $ 50,000
=$3,000 F
Direct Material Qty variance= ( Actual Qty x standard Price) -(Standard Qty x standard Price)
=(20,000 x $2.50) –(18,400 x $2.50)
= $ 50,000 - $ 46,000
=$4,000 U
Direct Labor rate variance=( Actual hrs x standard rate) –( Actual hrs x actual rate)
=(750 hrs x $18.00) –($14,925)
=$13,500-$14,925
=$1,425 U
Direct Labor Efficiency variance=(Standard hrs x standard rate) –( Actual hrs x standard rate)
=(800 hrs x $18.00) –(750 hrs $18.00)
=$14,400-$13,500
=$900 F