# CH24HW - Problem 24-1A Part 1 Direct Materials Variances...

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Problem 24-1A Part 1 Direct Materials Variances Direct materials cost variances Actual units at actual cost [1,000,000 lbs. @ \$4.25]. ................ \$4,250,000 Standard units at standard cost [1,050,000 lbs. @ \$4.00]. ....... 4,200,000 Direct material cost variance. ..................................................... \$ 50,000 U Direct Materials Price and Quantity Variances Actual Cost AQ x AP AQ x SP Standard Cost SQ x SP 1,000,000 x \$4.25 1,000,000 x \$4.00 1,050,000 x \$4.00 \$4,250,000 \$4,000,000 \$4,200,000 \$250,000 U (Price variance) \$200,000 F (Quantity variance) \$50,000 U (Total materials variance) Part 2 Direct Labor Variances Direct labor cost variances Actual units at actual cost [250,000 hrs. @ \$7.75]. ................... \$1,937,500 Standard units at standard cost [252,000 hrs. @ \$8.00]. ......... 2,016,000 Direct labor cost variance. .......................................................... \$ 78,500 F Direct Labor Rate and Efficiency Variances Actual Cost AH x AR AH x SR Standard Cost SH x SR 250,000 x \$7.75 250,000 x \$8.00 252,000 x \$8.00 \$1,937,500 \$2,000,000 \$2,016,000

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\$62,500 F (Rate variance) \$16,000 F (Efficiency variance) \$78,500 F (Total labor variance)
Problem 24-1A (Continued) Part 3 Overhead Variances Controllable variance Actual overhead [\$1,960,000 + \$1,200,000]. ............................. \$3,160,000 Applied overhead [from flexible budget, 70% capacity] . ....... 3,276,000

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CH24HW - Problem 24-1A Part 1 Direct Materials Variances...

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