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Accnt Hw P10-14 - -300 F Total variance 290 U From these...

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P10-14 Direct materials 3.0 pounds $2.00 $6.00 Direct labor 0.8 hours $6.00 $4.80 Variable manufacturing overhead 0.4 hours $3.00 $1.20 Total standard cost $12.00 Pools 15,000 Materials 60,000 pounds Used 49,200 pounds $1.95 per pound 11,800 hours labor-hours $7.00 per hour Incurred variable manufacturing overhead cost $18,290 5,900 machine-hours Direct materials price variances -3000 F Direct materials quantity variances 8400 U Direct labor rate variances 11800 U Direct labor efficiency variances -1200 U Total variance 10600 U Variable overhead rate variances 590 U Variable overhead efficiency variances
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Unformatted text preview: -300 F Total variance 290 U From these above, we can see that the planning budget was unfavorable in big amount. The company should change the planning budget more accurate. Standard Quantity Standard Price Standard Cost Two most significant variances are direct materials quantity and direct labor variances. For direct labor, the cause is from the cost the company pay for labor. It is $7 instead of $6. And for the direct materials, the company used 49,200 pounds instead of 45,000 pounds as they were planning....
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