# Variance Analysis

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Help me with the attached problem Please.

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MAPLE PRODUCTS, LTD.

Direct Materials Price and Quantity Variances for Last Year

Standard quantity of materials per hockey stick:

Direct materials added to work in process

Standard direct materials cost per foot

Standard quantity of direct materials-last year

Actual quantity of materials per hockey stick:

Standard quantity of direct materials

Number of sticks produced

Standard quantity of direct materials per stick

Actual quantity of direct materials-last year (feet)

Standard

Actual Actual Standard Actual Quantity Actual Quantity Quantity

Quantity Price Price @ Actual Price @ Std. Price @ Std. Price

Price Variance

Materials Used

Quantity Variance

Journal Entries:

Account Debit Credit

Raw Materials

Materials Price Variance

Accounts Payable

Work in Process

Materials Quantity Variance

Raw Materials

MAPLE PRODUCTS, LTD.

Labor Rate and Efficiency Variances for Last Year

Variable overhead efficiency variance:

Standard rate

Actual hours

Standard hours

Variable overhead efficiency variance

Labor rate variance

Actual hours

Actual rate

Standard rate

Labor rate variance

Standard

Actual Actual Standard Standard Actual Hours Actual Hours Hours

Hours Rate Hours Rate @ Actual Rate @ Std. Rate @ Std. Rate

Rate Variance

Efficiency Variance

Total Variance

Journal Entries:

Account Debit Credit

Work in Process

Labor Efficiency Variance

Labor Rate Variance

Wages Payable

MAPLE PRODUCTS, LTD.

Variable Overhead Spending and Efficiency Variances for Last Year

Standard

Actual Actual Standard Standard Actual Hours Actual Hours Hours

Hours Rate Hours Rate @ Actual Rate @ Std. Rate @ Std. Rate

Spending Variance

Efficiency Variance

Total Variance

4. State possible causes of each variance that you have computed.

For materials:

For labor:

For variable overhead:

MAPLE PRODUCTS, LTD.

Standard Cost Card

Standard Standard

Quantity Price Standard

or Hours or Rate Cost

Total standard cost

MAPLE PRODUCTS, LTD.

Standard Standard

Quantity Price Standard

Standard cost of one hockey stick: or Hours or Rate Cost

Direct materials (feet) ? $3.00 ?

Direct labor (hours) 2.0 ? ?

Variable manufacturing overhead ? $1.30 ?

Total standard cost $27.00

Units produced and sold last year 8,000

Selected cost data: Debit Credit

Accounts payable-direct material purchased $174,000

Wages payable 79,200

Work in process-direct materials $115,200

Direct labor rate variance 3,300

Variable overhead efficiency variance 650

Direct materials purchased (in feet) 60,000

Actual variable manufacturing overhead

cost for last year $19,800

Actual direct materials usage exceeded

standard per stick (in feet) 0.2

Check figures:

(1a) Materials price variance $6,000 F

(3) Variable overhead spending variance 1,650 F

https://brainmass.com/business/accounting/variance-analysis-167133

#### Solution Preview

Please see the attached file

MAPLE PRODUCTS, LTD.

Direct Materials Price and Quantity Variances for Last Year

Standard quantity of materials per hockey stick:

Direct materials added to work in process $115,200 Given

Standard direct materials cost per foot $3.00 Given in table

Standard quantity of direct materials-last year 38,400 Calculate

Correct!

Actual quantity of materials per hockey stick:

Standard quantity of direct materials 38,400 From above

Number of sticks produced 8,000 Given

Standard quantity of direct materials per stick 4.8 Calculate

Correct!

Actual quantity of direct materials-last year (feet) 5.00 From above + variance given

Correct!

Purchased Calculate Given Given Calculate Standard

Actual Actual Standard Actual Quantity Actual Quantity Quantity

Quantity Price Price @ Actual Price @ Std. Price @ Std. Price

60,000 $2.90 $3.00 $174,000 $180,000 $115,200 Calculate

Price Variance $6,000 Favorable

Materials Used $120,000 Actual Ft @ Std $

Quantity Variance $4,800 ...

#### Solution Summary

The solution explains how to calculate the various material, labor and overhead variances for Maple Products.