Can you please help with the following? How many Lamps were completed? PART 6 St

Question

Can you please help with the following?

How many Lamps were completed?

PART 6 Standard Job Order Costing -    Variance Analysis Special order lamps are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders: Standards Lamp Kits $16.000000 per lamp Direct Labor 2.400000 per lamp (4 lamps/hr.) Variable Overhead 0.250000 per lamp (4 lamps/hr.) ** Fixed Overhead 10.000000 per lamp    Total $28.650000 ** Fixed overhead is based on expected production of 4,007 customized lamps each month. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences. Job Order Costing Section On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,000 Lamp Kits @ $16.40 per kit. 9-Jan 4,025 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 620 Direct Labor Hours @ $9.55 per hour. 30-Jan Payroll of 670 Direct Labor Hours @ $9.80 per hour. 30-Jan 3,993 lamps were completed and shipped. All materials requisitioned were used or scrapped. Month End Overhead Information Actual Variable Overhead $1,161.00 Actual Fixed Overhead $40,873.45

Explanation / Answer

Number of Lamps completed 3993 MATERIAL VARIANCES: SP Standard Price of materials(Lamp kits) $16 AP Actual Price of materials (Lamp Kit) $16.40 PQ Purchased Quantity                 4,000 SQ Standard Quantity for actual production 3993 AQ Actual Quantity for actual production 4025 Material Variances: PQ(AP-SP) Total material price variance for the Lamp Kits purchased $1,600 Unfavourable because Actual Price is higher than the Standard Price SP*(AQ-SQ) Material usage variance for Lamp Kits? $                512 Unfavourable because Actual Quantityis higher than the Standard Quantity LABOR VARIANCES Standard Labot Hour per unit 0.25 (1/4 hour) SH Standard labor hour for actual production 998.25 (0.25*3993) SR Standard Labor Rate $               9.60 (2.4/0.25) AR Actual labor Rate $9.68 (620*9.55+670*9.8)/(620+670) AH Actual labor hour 1290 (620+670) SR*(AH-SH) Direct Labor Efficiency Variance $      2,800.80 Unfavourable because Actual Hour is higher than the Standard Hour AH*(AR-SR) Direct Labor Rate Variance $103.00 Unfavourable because Actual Rate is higher than the Standard Rate VARIABLE OVERHEAD VARIANCE SR Standard Variable overhead Rate $1 (0.25/0.25) Standard direct labor hour per unit 0.25 SH Standard direct labor hour for actual production 998.25 (0.25*3993) Actual Variable Overhead $1,161 AH Actual direct labor hour 1290 AR Actual Variable overhead Rate $0.90 (1161/1290) AH*(AR-SR) Variable Overhead Spending Variance ($129.00) Favourable because Actual Rate is less than the Standard Rate SR*(AH-SH) Variable Overhead Efficiency Variance 291.75 Unfavourable because Actual Hour is higher than the Standard Hour FIXED OVERHEAD VARIANCE BF Budgeted Fixed overhead cost $          40,070 ($10*4007) APF Applied Fixed overhead cost $          39,930 ($10*3993) APF-BF Fixed Overhead Volume Variance $              (140) AF Actual Fixed Overhead $40,873.45 AF-BF Fixed Overhead Spending Variance $803.45 Unfavourable because ActualOverhead is higher than the Standard Overhead

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