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# Variances and Standard Costs

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
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.

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?

#### Solution Summary

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

\$2.19