accounting

posted by .

Part D

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 -

    There 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.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    a bathroom cleaner contains 1 part of bleach with 4 parts of water. if you need 10 parts of bathroom cleaner, how much water and bleach do you need?
  2. math

    (a) You have of an hour to take a three-parts exam. You use of an hour for the first part and of an hour for the second part. How much time do you have left to finish the last part of the test?
  3. Science-Pendulum

    The four parts in which I had to go through this investigation was: Part 1: Practice Part 2: Does mass affect the swing rate of a pendulum?
  4. Math Algebra

    kassie an kesya are dividing $39 into two parts in order that the sum of 2/3 of one part and 3/4 of the other part is $28. What are the parts?
  5. Chemistry

    Part 1: Each molecule of NO2, nitrogen dioxide, consists of 1 atom of N and 2 atoms of O. If you have 0.155 g. of NO2, how many molecules of NO2 do you have ?
  6. Reiny!!!! math help

    We understand how to do the questions now and we are really glad n thankful, but the graphing portion of it is confusing. Continuation of the function. The teacher wants us to plot the points from the different parts of the questions …
  7. 5th grade math (word problems)

    I'm not sure how to solve the following problem: If you divide 1/10 of a dollar into parts that are each 1/100 of a dollar, how many parts are there?
  8. chemistry

    The urine of horses are mixed with an excess of hydrochloric acid, after some time, a yellowish-brown crystalline precipitate, which have an unpleasant odor, that can't be removed by simply washing with water. This new compound has …
  9. Physics Help Please

    a) On the Acme W&W company production line, parts have to be transported 100 m by conveyor belt to a machine area. The parts move at a constant speed of 2.5 m/s. How much time does it take to move a part 100 m?
  10. Quantitative, stastics and business

    A company has three machines A, B and C which all produce the same two parts, X and Y. of all the parts produced, machine A produces 60%, machine B produces 30%, and machine C produces the rest. 40% of the parts made by machine A are …

More Similar Questions