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Variance Analysis

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Q1. (12 marks ) Lido Company's standard and actual costs per unit for the most recent period, during which 400 units were actually produced, are given below:

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From the above information, compute the following variances. Show whether the variance is favourable (F) or unfavourable (U):
a) Materials price variance (2 marks)
b) Materials quantity variance (2 marks)
c) Direct labour rate variance (2 marks)
d) Direct labour efficiency variance (2 marks)
e) Variable overhead spending variance (2 marks)
f) Variable overhead efficiency variance (2 marks)

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Question
Lido Company's standard and actual costs per unit for the most recent period, during which 400 units were actually produced, are given below:

Solutions
From the above information, compute the ...

Solution Summary

Explanation and calculations of Materials price variance, Materials quantity variance; Direct labour rate variance;
Direct labour efficiency variance; Variable overhead spending variance; Variable overhead efficiency variance

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