Professional Documents
Culture Documents
Jeremy Peh
Vanessa Lam
Yeo Jing Wen
Actual Quantity
X
Actual Price
Actual Quantity
X
Standard Price
Standard
Quantity
X
Standard Price
12000 x 1.8
X
$3.30
12000 x 1.8
X
$3.00
12000 x 1.8
X
$3.00
$71,280
$64,800
$64,800
Price Variance
$6,480 U
Quantity Variance
0
Actual Hours
X
Actual Rate
Actual Hours
X
Standard Rate
Standard Hours
X
Standard Rate
12000 x 0.92
X
$17.50
12000 x 0.92
X
$18.00
12000 x 0.9
X
$18.00
$193,200
$198,720
$194,400
Rate Variance
$5,520 F
Efficiency Variance
$4,320 U
Actual Hours
X
Actual Rate
Actual Hours
X
Standard Rate
Standard Hours
X
Standard Rate
12000 x 0.92
X
$4.50
12000 x 0.92
X
$5.00
12000 x 0.9
X
$5.00
$49,680
$55,200
$54,000
Variable Overhead
Rate Variance
$5,520 F
Variable Overhead
Efficiency Variance
$1,200 U
Per Unit
$0
6480 U
$0
0.54 U
4320 U
5520 F
0.36 U
0.46 F
1200 U
5520 F
0.10 U
0.46 F
960 U
0.08 U
Direct Labor:
Efficiency variance
Rate variance
Variable overhead:
Efficiency variance
Rate variance
Excess of actual over
standard cost per unit
$0.36U
0.10U $0.46U
Excess unit cost in this case is within the 2% percent limit the
management has set for acceptable variances. However, the
materials price and quantity variance, labour rate and
efficiency variance as well as the variable overhead rate and
efficiency variance might not be within the 2 percent limit.
POHR=
Actual variable
overhead
incurred
(AH X AR)
Flexible budget
for overhead at
actual hours
(AH X SR)
Flexible budget
for overhead at
standard hours
(SH x SR)
$185,600
64,000
X
$3.00
$192,000
63,000
X
$3.00
$189,000
Variable Overhead
Rate Variance
$6,400 F
Variable Overhead
Efficiency Variance
$3,000 U
Actual Fixed
Overhead
$302,400
Fixed Overhead
Budget Variance
$2,400 U
Budgeted Fixed
Overhead
$300,000
Fixed Overhead
Applied to WIP
(POHR x SQ)
1.5 x 42000
X
$5.00
$320,000
Variable Overhead
Efficiency Variance
$15,000
Actual Quantity
X
Actual Price
Actual Quantity
X
Standard Price
Standard Quantity
X
Standard Price
10000
X
$13.80
10000
X
$14.00
12000 x 1.8
X
$3.00
$138,000
$140,000
$64,800
8000
X
$14.00
3000 x 2.5
X
$14.00
$112,000
$105,000
Price Variance
$2,000 F
Quantity Variance
$7,000 U
Credit
140,000
Direct Materials
Price Variance
2000
Account Payable
138000
Credit
112000
Actual Hours
X
Actual Rate
$43,000
Rate Variance
$3,000 U
Actual Hours
X
Standard Rate
Standard Hours
X
Standard Rate
5000
X
$8.00
3000 x 1.6
X
$8.00
$40,000
$38,400
Efficiency Variance
$1,600 U
Work In Process
Credit
38,400
43,000
Raw materials
140,000
112,000
Balance:
28,000
Work in Process
105,000
38,400
Account Payable
Wages Payable
138,000
Material Price
Variance
2,000
Labour Rate Variance
3,000
43,000
Material Quantity
Variance
7,000
Labour Efficiency
Variance
1,600
Thank You