Build_a_Spreadsheet_11_43

Build_a_Spreadsheet_11_43 - = AH x (AR* - SR) = 8,000 x...

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DATA INPUT Containers (cases) of frozen food produced 1,450 Actual costs: Variable overhead $11,000 Fixed overhead 26,000 Actual labor cost 8,000 direct-labor hours 151,200 Actual material cost 30,000 pounds purchased and used 66,000 Standard costs per case: Direct labor 5 hours at $18.00 $90.00 Direct material 20 pounds at $2.00 40.00 Variable overhead 5 hours at $1.50 7.50 Fixed overhead 5 hours at $3.00 15.00 $152.50 Annual budget information Variable overhead $150,000 Fixed overhead $300,000 Planned activity for year 100,000 direct-labor hours SOLUTION Direct-material price variance = PQ x (AP* - SP) = 30,000 x $2.20 - $2.00 = $6,000 Unfavorable * AP = $66,000 / 30,000 = $2.20 Direct-material quantity variance = SP x (AQ - SQ*) = $2.00 x 30,000 - 29,000 = $2,000 Unfavorable *SQ = 1,450 x 20 lbs. per unit = 29,000 Direct-labor rate variance
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Unformatted text preview: = AH x (AR* - SR) = 8,000 x $18.90 - $18.00 = $7,200 Unfavorable *AR = $151,200 / 8,000 = $18.90 Direct-labor efficiency variance = SR x (AH - SH*) = $18.00 x 8,000 - 7,250 = $13,500 Unfavorable * SH = 1,450 units x 5 hrs. per unit = 7,250 Variable-overhead spending variance = actual VOH- (AH x SVR) = $11,000 - 8,000 x $1.50 = $(1,000) Favorable Variable-overhead efficiency variance = SVR x (AH - SH) = $1.50 x 8,000 - 7,250 = $1,125 Unfavorable Fixed-overhead budget variance = actual FOH-budgeted FOH* = $26,000 -$25,000 = $1,000 Unfavorable * budgeted FOH = $300,000 / 12 = $25,000 Fixed-overhead volume variance = budgeted FOH-applied fixed overhead = $25,000 -$21,750 = $3,250 (positive) applied fixed overhead = 1,450 units x 15.00 per unit = $21,750...
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