Respuesta :
Answer:
1. Material Variances
Material Price Variance = $3,000 F
Material Quantity Variance = $4,000 U
2. Labor Variances
Labor Rate Variance = $1,425 U
Labor Efficiency Variance = $900 F
Explanation:
Provided information we have,
Direct Materials
Standard Quantity = 4.6 pounds
Standard Rate = $2.50 per pound
Direct Labor
Standard Hours = 0.2 hour per unit
Standard Rate = $18 per hour
Actual Materials
Actual Quantity = 20,000 pounds
Actual Rate = $2.35 per pound
Actual Labor
Labor Hours = 750 hours
Labor Cost = $14,925
Labor rate = [tex]\frac{14,925}{750} = $19.9 per hour[/tex]
Actual Units produced = 4,000
1. Material Variances
[tex]Material\ Price\ Variance = (Standard\ Price - Actual\ Price) \times Actual\ Units[/tex]
= ($2.50 - $2.35) [tex]\times[/tex] 20,000 pounds
= $3,000
As the actual rate is less than standard rate the variance is favorable.
[tex]Material\:Quantity\ Variance = (Standard\ Quantity - Actual\ Quantity) \times Standard\ Rate[/tex]
Standard Quantity = 4,000 [tex]\times[/tex] 4.6 = 18,400 pounds
Material Quantity Variance = (18,400 - 20,000) [tex]\times[/tex] $2.50
= - $4,000
As the actual raw material quantity used is higher than standard raw material quantity the variance is unfavorable.
2. Labor Variances
[tex]Labor\ Rate\ Variance = (Standard\ Rate - Actual\ Rate) \times Actual\ Hours[/tex]
= ($18 - $19.9) [tex]\times[/tex] 750 = - $1,425
As actual rate is higher than standard rate thus the variance is unfavorable.
[tex]Labor\ Efficiency\ Variance = (Standard\ Hours - Actual\ Hours) \times Standard\ Rate[/tex]
Standard Hours = 4,000 [tex]\times[/tex] 0.2 = 800
Labor Efficiency Variance = (800 - 750) [tex]\times[/tex] $18
= $900
As the Standard Hours is more than Actual Hours the variance is favorable.
1. Material Variances
Material Price Variance = $3,000 F
Material Quantity Variance = $4,000 U
2. Labor Variances
Labor Rate Variance = $1,425 U
Labor Efficiency Variance = $900 F
Variance is termed as the difference between the budgeted, planned, or standard cost and the actual amount incurred or sold in the firm.
1. Material Variances
Material Price Variance = $3,000 F
Material Quantity Variance = $4,000 U
2. Labor Variances
Labor Rate Variance = $1,425 U
Labor Efficiency Variance = $900 F
The given information is:
Direct Materials
Standard Quantity = 4.6 pounds
Standard Rate = $2.50 per pound
Direct Labor
Standard Hours = 0.2 hours per unit
Standard Rate = $18 per hour
Actual Materials
Actual Quantity = 20,000 pounds
Actual Rate = $2.35 per pound
Actual Labor
Labor Hours = 750 hours
Labor Cost = $14,925
[tex]\begin{aligned} \text{Labor rate}&=\frac{\text{Labor cost}}{\text{Labor hours}}\\&= \frac{\$14,925}{750}\\& =19.9 \text{per hour}\end{aligned}[/tex]
Actual Units produced = 4,000
1. Material Variances
[tex]\begin{aligned} \text{Material price variance}&= \text{Standard price}-\text{Actual price}\times \text{Actual units}\\&= \$2.50 - \$2.35 \times 20,000 pounds\\&= \$3,000 \end{aligned}[/tex]
As the actual rate is less than the standard rate the variance is favorable
As the actual raw material quantity used is higher than the standard raw material quantity the variance is unfavorable.
2. Labor Variances
[tex]\begin{aligned}\text{Labor rate variance}&=\text{Standard rate}-\text{Actual rate} \times \text{Actual hours}\\&= \$18 - \$19.9 \times 750 \\&= -\$1,425\end{aligned}[/tex]
As the actual rate is higher than the standard rate thus the variance is unfavorable.
[tex]\begin{aligned} \text{Labor efficiency variance}&= \text{Standard hours}-\text{Actual hours} \times \text{Standard Rate} \\\text{Standard hours}& = 4,000 \times 0.2 \\&= 800 \\\text{Labor efficiency variance}&=800-750 \times \$18\\&= - \$900\end{aligned}[/tex]
As the Standard Hours is more than Actual Hours the variance is favorable.
To know more about the labor rate and efficiency variances, refer to the link below:
https://brainly.com/question/15082446?referrer=searchResults