Explore BrainMass

Explore BrainMass

    Managerial Accounting

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please help with these problems!

    There are *THREE* jpg (image) files attached that contain the scanned questions I need help with. The question numbers are listed below...

    26 A & B, 23, and 35 A, B, C

    THANKS!!

    © BrainMass Inc. brainmass.com June 3, 2020, 11:45 pm ad1c9bdddf
    https://brainmass.com/business/labour-management-and-relations/materials-variance-labor-variance-allocate-overhead-costs-296638

    Attachments

    Solution Preview

    26. a.
    Direct Material Price Variance = (Actual Price - Standard Price) X Actual Quantity
    Actual Price =105,500/200,000 = $ 0.53
    Standard Price =$0.5
    Actual Quantity =200,000 pounds
    Price Variance = (0.53-0.5) 200,000 = 5,500 U

    Direct Material Quantity Variance = (Actual Quantity-Standard Quantity) X Standard Price
    Actual Quantity =200,000
    Standard Quantity = 97,810 X 2= 195,620 pounds
    Standard Price =$0.5
    Quantity Variance =(200,000-195,620) 0.5=$2,190U

    b.
    Labor Rate Variance = (Actual rate - Standard rate) X Actual time
    Actual Rate = 905,000/99,200 = $ 9.12
    Standard rate= 9.00
    Actual Hours= 99,200
    Labor Rate variance =(9.12-9) 99,200=$ 12,200U

    Labor Efficiency Variance= (Actual Hours - ...

    Solution Summary

    The solution explains
    26 - Seuss Company - material and labor variance
    23 - Beatrice Inc - using multiple cost drivers to allocate cost to Job CLK430
    35 - Wafers Inc - Joint cost allocation and product profitability in relation to purified wafers and chips

    $2.19

    ADVERTISEMENT