Evaluate andy''s direct material variances

Assignment Help Financial Accounting

Reference no: EM133736

Question :

Straightforward variance analysis

Andy Enterprises uses a standard costing system. The standard cost sheet for product no. 551 follows.

Direct materials: 4 units @ $6.50 $26.00

Direct labor: 8 hours @ $8.50 68.00

Variable factory overhead: 8 hours @ $7.00 56.00

Fixed factory overhead: 8 hours @ 2.5 20.00

Total standard cost per unit $170.00

The subsequent information pertains to activity for December:

1. Direct materials acquired through the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations.

2. Andy incurred an average wage rate of $8.75 for 51,400 hours of activity.

3. Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread consistently throughout the year.

4. Actual production amounted to 6,500 completed units.

Instructions:

a. Evaluate Andy's direct material variances.

b. Determine Andy's direct labor variances.

c. Determine Andy's variances for factory overhead.

Reference no: EM133736

Questions Cloud

Evaluate the weighted-average number of shares : Evaluate the weighted-average number of shares used in earnings per share calculations?

What collateral or security will the company provide : What collateral or security will the company provide to make sure that any loan i make will be repaid?

Name and describe four security planning principles : Name and describe four security planning principles

What amount of gross profit would be recognized in 2013 : Consider Platypus Building Inc. uses the percentage of completion technique, what amount of gross profit would be recognized in 2013?

Evaluate andy''s direct material variances : Evaluate Andy's direct material variances. Determine Andy's direct labor variances.

Influence the direction and volume of tourist travel : most used mode of transport for tourism in the world, demand for business class products and services impacts on the development of airports, wide multiplicity of international languages, high-quality airport for the business traveller

Basic flexible budgeting : Basic flexible budgeting Sydney, Inc., has the subsequent budgeted production costs:

What elements are needed to calculate the look angle : What elements are needed to calculate the look angle

Evaluate the division of the net income : Plan except that Wilkins is also to be allowed a bonus equal to 20 percent of the amount by which net income exceeds the total salary allowances.

User Account

All Pages