Saturday

April 19, 2014

April 19, 2014

Posted by **Anonymous** on Sunday, March 30, 2008 at 3:08pm.

Note: This section is a continuation from Parts A, B, and C of the comprehensive problem. Be sure you have completed Parts A, B, and C before attempting Part D. You may have to refer back to data presented in Parts A, B, and C as well as use answers from those parts when completing this section.

Part D - August Variance Analysis

During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,200 cases produced during August, which was 50 more cases than planned at the beginning of the month. Actual data for August were as follows:

Actual Direct Materials

Price per Case Actual Direct Materials

Quantity per Case

Cream base $1.00 (for 72 ozs.) 75 ozs.

Natural Oils $6.20 (for 24 ozs.) 25 ozs.

Bottle (8-oz.) $4.50 (for 12 bottles) 12.2 bottles

Actual Direct

Labor Rate Actual Direct Labor

Time per Case

Mixing $ 15.25 16.50 min.

Filling $ 11.50 4.50 min.

Actual variable overhead $ 125

Normal volume 1,500 cases

The prices of the materials were different than standard due to fluctuations in the market prices. Specifically, the prices of the cream base and bottles were below the standard price, while the price of natural oils was above the standard price. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The Filling department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard.

13. Determine and interpret the direct materials price and quantity variances for the three materials. Enter the costs in dollars and cents.

Direct Materials Price Variance

Cream Base Natural Oils Bottles

Actual price $ This question is unanswered $ This question is unanswered $ This question is unanswered

Standard price $ This question is unanswered $ This question is unanswered $ This question is unanswered

Difference $ This question is unanswered $ This question is unanswered $ This question is unanswered

Actual quantity (in cases) This question is unanswered This question is unanswered This question is unanswered

Direct material price variance $ This question is unanswered $ This question is unanswered $ This question is unanswered

Indicate if favorable or unfavorable This question is unanswered This question is unanswered This question is unanswered

Enter the standard price as dollar and cents but carry your answer to three decimals places. For example, $1.3458 would be entered as 1.346.

Direct Materials Quantity Variance

Cream Base Natural Oils Bottles

Actual quantity (ozs.) This question is unanswered This question is unanswered This question is unanswered

Standard quantity (ozs.) This question is unanswered This question is unanswered This question is unanswered

Difference This question is unanswered This question is unanswered This question is unanswered

Standard price $ This question is unanswered $ This question is unanswered $ This question is unanswered

Direct material quantity variance $ This question is unanswered $ This question is unanswered $ This question is unanswered

Indicate if favorable or unfavorable This question is unanswered This question is unanswered This question is unanswered

Interpret your results. The input in the box below will not be graded, but may be reviewed and considered by your instructor.

14. Determine and interpret the direct labor rate and time variances for the two departments. Enter your answers to two decimal places.

Direct Labor Rate Variance

Mixing Department Filling Department

Actual rate $ This question is unanswered $ This question is unanswered

Standard rate $ This question is unanswered $ This question is unanswered

Difference $ This question is unanswered $ This question is unanswered

Actual time (in hours) This question is unanswered This question is unanswered

Direct labor rate variance $ This question is unanswered $ This question is unanswered

Indicate if favorable or unfavorable This question is unanswered This question is unanswered

Direct Labor Time Variance

Mixing Department Filling Department

Actual time (in hours) This question is unanswered This question is unanswered

Standard time (in hours) This question is unanswered This question is unanswered

Difference This question is unanswered This question is unanswered

Standard rate $ This question is unanswered $ This question is unanswered

Direct labor time variance $ This question is unanswered $ This question is unanswered

Indicate if favorable or unfavorable This question is unanswered This question is unanswered

Interpret your results. The input in the box below will not be graded, but may be reviewed and considered by your instructor.

15. Determine and interpret the factory overhead controllable variance.

Actual variable overhead $ This question is unanswered

Variable overhead at standard cost $ This question is unanswered

Factory overhead controllable variance $ This question is unanswered

Indicate if favorable or unfavorable This question is unanswered

Interpret your results. The input in the box below will not be graded, but may be reviewed and considered by your instructor.

16. Determine and interpret the factory overhead volume variance. When determining the fixed factory overhead rate, carry your answer to three decimal places. For example, 5.2786 would be entered as 5.279.

Normal volume (cases) This question is unanswered

Actual volume (cases) This question is unanswered

Difference This question is unanswered

Fixed factory overhead rate $ This question is unanswered

Factory overhead volume variance $ This question is unanswered

Indicate if favorable or unfavorable This question is unanswered

Interpret your results. The input in the box below will not be graded, but may be reviewed and considered by your instructor.

17. Why are there standard direct labor and direct materials costs in the calculations for parts (13) and (14) based on the actual 1,200-case production volume rather than the planned 1,150 cases of production used in the budgets for parts (9) and (10)?

Interpret your results. The input in the box below will not be graded, but may be reviewed and considered by your instructor.

- accounting -
**SraJMcGin**, Sunday, March 30, 2008 at 3:58pmThere is no need to repost 3 times within the same hour. The volunteers are not on 24/7 but come and go as they have time.

**Related Questions**

chemistry - The urine of horses are mixed with an excess of hydrochloric acid, ...

5th grade math (word problems) - I'm not sure how to solve the following problem...

Chemistry - Part 1: Each molecule of NO2, nitrogen dioxide, consists of 1 atom ...

3rd grade - alice folded a piece of paper into 12 equal squares and colored them...

Reiny!!!! math help - We understand how to do the questions now and we are ...

math - a bathroom cleaner contains 1 part of bleach with 4 parts of water. if ...

Algebra 1 - You are making up your own mix of concrete to patch a set of stairs...

Mathematics - A machine takes 4.2 hours to make 7 parts. At that rate, how many ...

Discrete Math - A factory makes automobile parts. Each part has a code ...

Science - Why is it rare for the soft parts of an organism to become a fossil? A...