Respuesta :
Answer:
Instructions are below.
Explanation:
Giving the following information:
Actual labor rate $13 per hour
Actual materials price $128 per ton
Standard labor rate $12.50 per hour
Standard materials price $130 per ton
Actual hours incurred and used 4,150 hours
The actual quantity of materials purchased and used 1,220 tons
Standard hours used 4,300 hours
The standard quantity of materials used 1,200 tons
1) To calculate the direct material total, price, and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (130 - 128)*1,220
Direct material price variance= $2,440 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (1,200 - 1,220)*130
Direct material quantity variance= $2,600 unfavorable
Total direct material cost variance= 2,440 - 2,600= $160 unfavorable
2) To calculate the direct labor total, time, and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (4,300 - 4,150)*12.5
Direct labor time (efficiency) variance= $1,875 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (12.5 - 13)*4,150
Direct labor rate variance= $2,075 unfavorable
Total direct labor cost variance= 1,875 - 2,075= $200 unfavorable
Variance is the analytical tool that helps to measure the differences between the actual input and the budgeted input for the production of a specified time period.
Computation:
The material quantity variance, material cost variance, and total material cost variance are computed as follows:
[tex]\begin{aligned}\text{Direct material quantity variance}&=\left(\text{standard quantity} - \text{actual quantity}\right)\times\text{standard price}\\&=\left(1,200-1,220 \right )\times\$130\\&=\$2,600\;\text{unfavorable} \end{aligned}[/tex]
[tex]\begin{aligned}\text{Direct material price variance}&=\left(\text{standard price} - \text{actual price}\right)\times\text{actual quantity}\\&=\left(\$130-\$128 \right )\times1,220\\&=\$2,440\;\text{favorable} \end{aligned}[/tex]
[tex]\begin{aligned}\text{Direct material cost variance}&=\text{Price variance}-\text{Quantity variance}\\&=\$2,440-\$2,600\\&=\$160\;\text{unfavorable} \end{aligned}[/tex]
The labor time variance, labor rate variance, and total labor cost variances are computed as follows:
[tex]\begin{aligned}\text{Direct labor time variance}&=\left(\text{standard quantity} - \text{actual quantity}\right)\times\text{Standard price}\\&=\left(4,300-4,150 \right)\times\$12.50\\&=\$1,875\;\text{favorable} \end{aligned}[/tex]
[tex]\begin{aligned}\text{Direct labor rate variance}&=\left(\text{standard price} - \text{actual price}\right)\times\text{Actual quantity}\\&=\left(\$12.50-\$13 \right)\times4,150\\&=\$2,075\;\text{unfavorable} \end{aligned}[/tex]
[tex]\begin{aligned}\text{Total direct labor cost variance}&=\text{Labor time variance}-\text{Labor rate variance}\\&=\$1,875-\$2,075\\&=\$200\;\text{unfavorable}\end{aligned}[/tex]
To know more about variances, refer to the link:
https://brainly.com/question/15178583
