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    Variances and Standard Costs

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    Standard cost problems I need help on please.

    1.) Lido Company's standard and actual costs per unit for the most recent period, during which 500 units were actually produced, are given below:

    Standard Actual
    Materials
    Standard: 2 feet at $1.50 per foot $3.00
    Actual: 1.9 feet at $1.60 per foot $3.04
    Direct Labor
    Standard: 1.5 hours at $6.00 per hour $9.00
    Actual: 1.7 hours at $6.30 per hour $10.71
    Variable manufacturing overhead
    Standard: 1.5 hours at $3.40 per hour $5.10
    Actual: 1.7 hours at $3.00 per hour $5.10
    Total unit Cost $17.10 $18.85

    All of the material purchased during the period was used in production during the period.

    Required:

    From the foregoing information, compute the following variances. Indicate whether the variance is favorable (F) or unfavorable (U):

    a. Material price variance.

    b. Material quantity variance.

    c. Direct labor rate variance.

    d. Direct labor efficiency variance.

    d. Variable overhead spending variance.

    f. Variable overhead efficiency variance.

    2.) The following standards have been established for a raw material used to make product O84:
    Standard quantity of the material per unit of output....7.1 meters
    Standard price of the material............................................$18.30
    The following data pertain to a recent month's operations:
    Actual material purchased..................................................3,400 meters
    Actual cost of material purchased.....................................$64,090
    Actual material used in production....................................3,100
    Actual output...........................................................................500 units of product O84
    Required:

    a. What is the materials price variance for the month?

    b. What is the materials quantity variance for the month?

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    https://brainmass.com/business/accounting/variances-standard-costs-243885

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    Solution Summary

    The solution explains how to calculate the material, labor and overhead variances

    $2.19

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