| Week 5 Template |
| a) Price variance = (actual price - standard price) times quantity bought |
| | Actual price | Standard price | Quantity bought | Price variance | Favorable or Unfavorable |
| Metal tubing | $ 3.15 | $ 3.00 | 3,000 | $ 455.00 | U |
| Leather | $ 7.35 | $ 7.00 | 1,050 | $ 372.00 | U |
| Padding | $ 4.10 | $ 3.90 | 1,600 | $ 320.00 | U |
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| b) Wage rate variance = (Actual wage rate - standard wage rate) times actual hours | | | | | | | | | | | | |
| | Actual wage rate | Standard wage rate | Actual hours | Wage rate variance | Favorable or Unfavorable | | | | | | |
| Direct labor | $ 15.58 | $ 15.00 | 1750 | $ 1,020.00 | U |
| c)Total price variance | 30.1888095238 | 28.9 | 7400 | 2167 | U |
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| d) Quantity variance = |
| (actual quantity used in production - standard quantity used in production) times the standard price |
| | Actual Quantity | Standard Quantity | Standard Price | Quantity variance | Favorable or Unfavorable |
| Metal tubing | 3000 | 3000 | $ 3.00 | $0.00 | F |
| Leather | 1050 | 1000 | $ 7.00 | $350.00 | U |
| Padding | 1600 | 1500 | $ 3.90 | $390.00 | U |
| e) Labor efficiency variance = (actual hours - standard hours) times standard wage |
| | Actual hours | Standard hours | Standard wage | Efficiency variance | Favorable or Unfavorable |
| Direct labor | 1750 | 2000 | $ 15.00 | -3750 | F |
| f) Total quantity variance | | | | -3010 | F |
| TOTAL VARIANCES |
| Metal tubing | | | | 455 | U |
| Leather | | | | 722 | U |
| Padding | | | | 710 | U |
| Direct labor | | | | (2,730) | F |
| TOTAL | | | | (843) | F |
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Wk5AnotherOldP1.xlsx
