The Alpine Group, Inc. provides the following data for the June 2018, when 15,000 units are...

 

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The Alpine Group, Inc. provides the following data for the June 2018, when 15,000 units are manufactured: Standard Material Cost (Per Unit) Actual Material Cost (Per Unit) Standard Labour Cost (Per Unit) Actual Labour Cost (Per Unit) a. Calculate: Direct Material Price Variance Direct Material Quantity/Usage Variance Total Material Cost Variance Direct Labour Rate Variance Direct labour Efficiency variance Total Labour Cost Variance 8.50 Kg @ $7.50/Kg 6.75 Kg @ $13.5/Kg 5.5 hrs @ $15/Hr 6.5 hrs @ $12.2/ Hr b. Calculate variable overhead spending variance if actual labour hours used are 260, standard variable overhead rate is $10.40 per direct labour hour and actual variable overhead rate is $9.30 per direct labour hour. Also specify whether the variance is favourable or unfavourable c. Calculate the variable overhead efficiency variance using the following figures: Number of Units Produced Standard Direct Labour Hours Per Unit Actual Direct Labour Hours Used Standard Variable Overhead Rate: 620 0.2 260 $10.40 B) Variance analysis is especially effective when you review the amount of a variance on a trend line, so that sudden changes in the variance level from month to month are more readily apparent. Variance analysis also involves the investigation of these differences, so that the outcome is a statement of the difference from expectations, and an interpretation of why the variance occurred. Define the term "Variances Analysis" and also highlight the Advantages and Disadvantages of Variances. The Alpine Group, Inc. provides the following data for the June 2018, when 15,000 units are manufactured: Standard Material Cost (Per Unit) Actual Material Cost (Per Unit) Standard Labour Cost (Per Unit) Actual Labour Cost (Per Unit) a. Calculate: Direct Material Price Variance Direct Material Quantity/Usage Variance Total Material Cost Variance Direct Labour Rate Variance Direct labour Efficiency variance Total Labour Cost Variance 8.50 Kg @ $7.50/Kg 6.75 Kg @ $13.5/Kg 5.5 hrs @ $15/Hr 6.5 hrs @ $12.2/ Hr b. Calculate variable overhead spending variance if actual labour hours used are 260, standard variable overhead rate is $10.40 per direct labour hour and actual variable overhead rate is $9.30 per direct labour hour. Also specify whether the variance is favourable or unfavourable c. Calculate the variable overhead efficiency variance using the following figures: Number of Units Produced Standard Direct Labour Hours Per Unit Actual Direct Labour Hours Used Standard Variable Overhead Rate: 620 0.2 260 $10.40 B) Variance analysis is especially effective when you review the amount of a variance on a trend line, so that sudden changes in the variance level from month to month are more readily apparent. Variance analysis also involves the investigation of these differences, so that the outcome is a statement of the difference from expectations, and an interpretation of why the variance occurred. Define the term "Variances Analysis" and also highlight the Advantages and Disadvantages of Variances.

Answer rating: 100% (QA)

Answer a To calculate the variances well use the provided data for standard and actual costs for both material and labor Direct Material Price Variance Standard Price 750Kg Actual Price 1350Kg Quantit... View the full answer