Answer:
a. Material price variance
= (Standard price - Actual price) x Actual quantity purchased
= ($6.80 - $6.473210634) x 48,900 ounces
= $15,980(F)
b. Material quantity (usage) variance
= (Standard quantity - Actual quantity used) x Standard price
= (8.70 x 6,300 - 54,840) x $6.80
= $204(A)
c. Labour rate variance
= (Standard rate - Actual rate) x Actual hour worked
= ($28.70 - $2.998583569 x 3,530 hrs
= $7,010 (A)
d. Labour efficiency variance
= (Standard hours - Actual hours) x Standard rate
= (0.6 x 6,300 - 3,530) x $28.70
= $7,175 (F)
e. Variable overhead rate variance
= (Standard rate - Actual rate) x Actual hours
= ($5.10 - $4.841359773) x 3,530
= $17,090 (F)
f. Variable overhead efficiency variance
= (Standard hours - Actual hours) x Standard rate
= (0.6 x 6300 - 3,530) x $5.10
= $1,275
Step-by-step explanation:
Material price variance is the difference between standard price and actual price multiplied by actual quantity purchased. Actual price is obtained by dividing cost of direct material purchased by quantity purchased.
Material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price. Standard quantity is obtained by multiplying standard quantity per unit by actual output.
Labour rate variance is the difference between standard rate and actual rate multiplied by actual hours.
Labour efficiency variance is the difference standard hours and actual hours worked multiplied by standard rate. Standard hours are obtained by multiplying standard hours per unit by actual output,
Variable overhead rate variance is the difference between standard variable overhead rate and actual variable overhead rate multiplied by actual hours.
Variable overhead efficiency variance is the difference between standard hours and actual hours multiplied by standard variable overhead rate.