Material, Labor, and Variable Overhead Variances The following summarized manufa
ID: 2569777 • Letter: M
Question
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Brown Corporation's May operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours.
Determine the following variances:
Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.
Standard Units Costs Total Actual Costs Direct material Standard (3 lb. @ $6.00/lb.) $18 Actual (6,400 lb. @ $6.30/lb.) $40,320 Direct labor Standard (0.5 hr. @ $18/hr.) $9 Actual (950 hrs. @ $17.80/hr.) 16,910 Variable overhead Standard (0.5 hr. @ $8/hr.) $4 Actual - 8,300 Total $31 $65,530Explanation / Answer
1)
AQ*SR
6400*6
38400
36000 [2000*18]
Actual -split
40320- 38400
1920 U
SPlit-standard
38400-36000
2400 U
2)
AH*SR
950*18
17100
18000 [2000*9]
Actual -split
16910-17100
190 F
SPlit-standard
17100-18000
900 F
3)
AH*SR
950*8
7600
8000 [2000*4]
Actual -split
8300-7600
700 U
SPlit-standard
7600-8000
400 F
Material variance Actual cost 40320 Split costAQ*SR
6400*6
38400
Standard cost36000 [2000*18]
Material priceActual -split
40320- 38400
1920 U
Materials efficiencySPlit-standard
38400-36000
2400 U