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    Material,labour and overhead variances

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    Data for the jones corporation

    planned volume for year(static) budget 4000 units
    standard direct materials cost per unit 3.1 lbs @ $1.50 per pound
    standard direct labor cost per unit 2 hours @ $4.10 per hr
    total expected fixed overhead cost $18,800
    Actual volume for the year(flexible budget 4,200 units
    actual direct materials cost per unit 2.7lbs @ $2.10 per pound
    actual direct labor cost per unit 2.3 hrs @ $3.40 per hr
    Total actual fixed overhead cost $15,000

    A. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity.

    B. Calculate the materials price and usage variances. Indicates whether the variances are favorable or unfavorable.

    C. Prepare a lobor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.

    d. Calculate the labor price and usage variances. Indicate whether the variances are favorable or unfavorable.

    E. Calculate the predetermined overhead rate, assuming that jones uses the number of units as the allocation base.

    f. Calculate the fixed manufacturing overhead cost spending variance. Indicate whether the variance is favorable or unfavorable.

    g. Calculate the fixed manufacturing overhead cost volume variance. Indicate whether the variance is favorable or unfavorable.

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    https://brainmass.com/business/accounting/material-labour-and-overhead-variances-253478

    Solution Summary

    The solution contains the computation of material,labour and overhead variances.

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