Question: Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Steffan Corporations April operations, during which 2,000 finished units of product were
Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Steffan Corporations April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours.
| Standard Units Costs | Total Actual Costs | ||||||
|---|---|---|---|---|---|---|---|
| Direct material | |||||||
| Standard (2 lb. @ $9.50/lb.) | $19 | ||||||
| Actual (4,200 lb. @ $10.20/lb.) | $42,840 | ||||||
| Direct labor | |||||||
| Standard (0.5 hr. @ $24/hr.) | $12 | ||||||
| Actual (970 hrs. @ $23.40/hr.) | 22,698 | ||||||
| Variable overhead | |||||||
| Standard (0.5 hr. @ $6/hr.) | $3 | ||||||
| Actual | - | 6,200 | |||||
| Total | $34 | $71,738 | |||||
Assume that the 4,200 lb. of materials purchased were all used in producing the 2,000 completed units. Determine the materials price and efficiency variances, labor rate and efficiency variances, and variable overhead spending and efficiency variances.
| Materials Variances | ||
|---|---|---|
| Actual cost: | Answer
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| Split cost: | Answer
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| Standard cost: | Answer
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| Materials price | Answer
| AnswerFU
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| Materials efficiency | Answer
| AnswerFU
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| Labor Variances | ||
|---|---|---|
| Actual cost: | Answer
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| Split cost: | Answer
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| Standard cost: | Answer
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| Labor rate | Answer
| AnswerFU
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| Labor efficiency | Answer
| AnswerFU
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| Variable Overhead Variances | ||
|---|---|---|
| Actual cost: | Answer
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| Split cost: | Answer
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| Standard cost: | Answer
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| Variable overhead spending | Answer
| AnswerFU
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| Variable overhead efficiency | Answer
| AnswerFU
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To solve the problem of calculating the material labor and variable overhead variances for Steffan Corporation we need to compute standard costs versus actual costs and identify the variances Lets bre... View full answer
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