Week 5 Written Assignment - Problems and Exercises

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chapter_8_-_p5.xls
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Template

P 08-05 Name :
Section :
Enter appropriate amount or item in the shaded cells. Use drop-down list when available.
An asterisk (*) will appear next to an incorrect entry in the outlined cells.
Enter all values as positive numbers.
1.
a. Direct materials price variance:
Standard direct materials price 0
Actual direct materials price 0
Difference in price 0 0
0 0 0 = Direct materials price variance
Direct materials price variance 0 0 0 0 0 0 0 Standard Price
Standard Quantity
Actual Quantity
b. Direct materials quantity variance: Actual Price
Standard direct materials quantity 0 meters
Actual direct materials quantity 0 meters Actual Quantity
Difference in quantity 0 meters 0 Actual Price
Standard Price
0 0 0 0 = Direct materials quantity variance
Direct materials quantity variance 0 0 0 0 0 0 Standard Quantity
Actual Quantity
Actual Price
c. Direct labor rate variance:
Standard direct labor rate 0
Actual direct labor rate 0
Difference in rate 0 0
0 0 0 = Direct labor rate variance
Direct labor rate variance 0 0 0 0 0 0 0 Standard Rate Actual Hours
Standard Hours Standard Rate
Actual Hours Actual Rate
d. Direct labor efficiency variance:
Actual Rate
Standard direct labor hours allowed 0 hours Actual Hours
Actual direct labor hours 0 hours Actual Quantity
Difference in hours 0 hours 0
0 0 0 = Direct labor efficiency variance
Direct labor efficiency variance 0 0 0 0 0 0 0 Standard Hours
Standard Rate
Actual Rate
e. Variable overhead spending variance: Actual Hours
0 0 = Budgeted variable overhead for actual hours
Budgeted variable overhead for actual hours 0 0 0 0 Standard Rate Actual hours worked
Actual Rate Standard hours worked
Budgeted variable overhead for actual hours 0 Actual Quantity Standard Quantity
Actual variable overhead costs incurred 0
Variable overhead spending variance 0 0
f. Variable overhead efficiency variance:
0 0 = Variable overhead applied to billed hours
Variable overhead applied to billed hours 0 0 0 0 Standard hours allowed
Actual hours allowed
Variable overhead applied to billed hours 0 Standard Quantity
Budgeted variable overhead costs for actual hours 0
Variable overhead efficiency variance 0 0
g. Fixed overhead budget variance:
Budgeted fixed overhead 0
Actual fixed overhead costs incurred 0
Fixed overhead budget variance 0 0
h. Fixed overhead volume variance:
0 0 = Fixed overhead applied to good units produced
Fixed overhead applied to good units produced 0 0 0 0
Fixed overhead applied to good units produced 0
Budgeted fixed overhead 0
Fixed overhead volume variance 0 0
2. Clean Sweep Company
Production Performance and Cost Variance Report
Product: All-Vinyl Doormats
For the month Ended August 31
Productivity Summary:
Normal capacity 0 units
Good units produced 0 units
Cost and Variance Analysis:
Standard cost Actual cost incurred Total variance Variance Breakdown
Direct materials 0 0 0 0 0 0 Direct materials price variance
0 0 Direct materials quantity variance
Direct labor 0 0 0 0 0 0 Direct labor rate variance
0 0 Direct labor efficiency variance
Variable overhead 0 0 0 0 0 0 Variable overhead spending variance
0 0 Variable overhead efficiency variance
Fixed overhead 0 0 0 0 0 0 Fixed overhead budget variance
0 0 Fixed overhead volume variance
Totals 0 0 0 0 0 0

Solution

P 22-05_Sol Name : SOLUTION
Section :
Enter appropriate amount or item in the shaded cells. Use drop-down list when available.
An asterisk (*) will appear next to an incorrect entry in the outlined cells.
Enter all values as positive numbers.
1.
a. Direct materials price variance:
Standard direct materials price $3.00
Actual direct materials price 2.90
Difference in price $0.10 F
Standard Price Actual Price Actual Quantity = Direct materials price variance
Direct materials price variance $3.00 - $2.90 x 25,200 $2,520 F Standard Price
Standard Quantity
Actual Quantity
b. Direct materials quantity variance: Actual Price
Standard direct materials quantity 25,000 meters
Actual direct materials quantity 25,200 meters Actual Quantity
Difference in quantity 200 meters U Actual Price
Standard Price
Standard Price Standard Quantity Actual Quantity = Direct materials quantity variance
Direct materials quantity variance $3.00 x 25,000 - 25,200 $600 U Standard Quantity
Actual Quantity
Actual Price
c. Direct labor rate variance:
Standard direct labor rate $20.00
Actual direct labor rate 19.90
Difference in rate $0.10 F
Standard Rate Actual Rate Actual Hours = Direct labor rate variance
Direct labor rate variance $20.00 - 19.90 x 10,800 $1,080 F Standard Rate Actual Hours
Standard Hours Standard Rate
Actual Hours Actual Rate
d. Direct labor efficiency variance:
Actual Rate
Standard direct labor hours allowed 15,000 hours Actual Hours
Actual direct labor hours 10,800 hours Actual Quantity
Difference in hours 4,200 hours F
Standard Rate Standard Hours Actual Hours = Direct labor efficiency variance
Direct labor efficiency variance $20.00 x 15,000 - 10,800 $84,000 F Standard Hours
Standard Rate
Actual Rate
e. Variable overhead spending variance: Actual Hours
Standard rate Actual hours worked = Budgeted variable overhead for actual hours
Budgeted variable overhead for actual hours $1.50 x 10,800 $16,200 Standard Rate Actual hours worked
Actual Rate Standard hours worked
Budgeted variable overhead for actual hours $ 16,200 Actual Quantity Standard Quantity
Actual variable overhead costs incurred 18,200
Variable overhead spending variance $ 2,000 U
f. Variable overhead efficiency variance:
Standard rate Standard hours allowed = Variable overhead applied to billed hours
Variable overhead applied to billed hours $1.50 x 15,000 $22,500 Standard hours allowed
Actual hours allowed
Variable overhead applied to billed hours $ 22,500 Standard Quantity
Budgeted variable overhead costs for actual hours 16,200
Variable overhead efficiency variance $ 6,300 F
g. Fixed overhead budget variance:
Budgeted fixed overhead $ 9,280
Actual fixed overhead costs incurred 10,000
Fixed overhead budget variance $ 720 U
h. Fixed overhead volume variance:
Standard rate Standard hours allowed = Fixed overhead applied to good units produced
Fixed overhead applied to good units produced $0.80 x 15,000 $12,000
Fixed overhead applied to good units produced $ 12,000
Budgeted fixed overhead 9,280
Fixed overhead volume variance $ 2,720 F
2. Clean Sweep Company
Production Performance and Cost Variance Report
Product: All-Vinyl Doormats
For the month Ended August 31
Productivity Summary:
Normal capacity 58,000 units
Good units produced 50,000 units
Cost and Variance Analysis:
Standard cost Actual cost incurred Total variance Variance Breakdown
Amount Type
Direct materials $ 75,000 $ 73,080 $ 1,920 F $ 2,520 F Direct materials price variance
600 U Direct materials quantity variance
Direct labor 300,000 214,920 85,080 F 1,080 F Direct labor rate variance
84,000 F Direct labor efficiency variance
Variable overhead 22,500 18,200 4,300 F 2,000 U Variable overhead spending variance
6,300 F Variable overhead efficiency variance
Fixed overhead 12,000 10,000 2,000 F 720 U Fixed overhead budget variance
2,720 F Fixed overhead volume variance
Totals $ 409,500 $ 316,200 $ 93,300 F $ 93,300 F