ACCOUNTING

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.

  1. 👍
  2. 👎
  3. 👁
  1. Thank you for using the Jiskha Homework Help Forum. If you were planning on "cut and paste" it rarely works here. You will need to type the rest of it out.

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. launguage

    Which important event should be highlighted in a trailer for Wonder? A. August enjoys learning about science. B. August is attending school for the first time. C. Charlotte shows August around the school. D. Via, August's sister,

  2. elementary statistics

    A statistics professor is used to having a variance in his class grades of no more than 100. He feels that his current group of students is different, and so he examines a random sample of midterm grades (listed below). At 0.05

  3. Statistics

    Which of these statements is not true about the variance in a binomial distribution B(n, p)? __________ A. For a fixed p, the variance increases as n increases. B. For a fixed n, the variance is maximum when p = 0.5. C. The

  4. statistics

    A researcher uses an analysis of variance to test for mean differences among three treatment conditions using a sample of n = 8 participants in each treatment. What degrees of freedom (df) would the F-ratio from this analysis

  1. statistics

    Waste Today Services operates a garbage hauling company in a South Jersey city. Each year, the company must apply for a new contract with the city. The contract is in part based on the pounds of garbage hauled. Part of the

  2. Statistics

    A study of generator related carbon monoxide deaths showed that a sample of 6 recent years had a variance of 16.8 deaths per year. Find the 99% confidence interval of the true variance

  3. Statistics

    Exam Grades. A statistics professor is used to having a variance in his class grades of no more than 100. He feels that his current group of students is different, and so he examines a random sample of midterm grades (listed

  4. School Holcaust Unit

    Okay, i know that this is a sad subject, but i'm getting confused. Was the Nurember Law written on August 20th, or September 1st 1935? Or did the meeting start on August 20th 1935 and ended September 1st 1935?? Any help would be

  1. math

    A researcher uses analysis of variance to test for mean differences among three treatments with a sample of n = 12 in each treatment. The F-ratio for this analysis would have what df values?

  2. Math

    How can I figure the number of days from one date to another? Example: How many days are from June 21 to Sept. 23? I need to do this without using a calendar. The first thing you need to know is the number of days in each month.

  3. Probability

    Suppose that in a given year, the probability that it will rain on September 21 is .358. What are the odds of it raining on September 21? How would a solve this? I would like to know the steps, not the answer. Thanks!

  4. accounting

    PR 9-6bAmortization and depletion entries Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. On December 31, the company determined that $3,400,000

You can view more similar questions or ask a new question.