Variance analysis, Variance Analysis explains

Variance analysis

Reference no: EM1341493

Variance Analysis

The following information is available for Mandalay Company:

Actual

Materials: 12,000 pounds purchased at $2.50 per pound; used 10,500 pounds
Direct Labor : 1800 hours at $12 per hour
Units produced: 500

Standard

Materials: 20 pounds per unit at a price of $2.20 per pound
Direct labor: 4 hours per unit at a wage rate of $10 per hour

How would I calculate the below (b/c I am lost!) I'm not understanding what numbers am I using?

-Material Price Variance = (Actual Price - Standard Price) x Actual Quantity
-Material Quantity Variance = (Actual Quantity - Standard Quantity) x Standard Price
-Direct labor rate and efficiency variance
-Direct labor rate variance = (Actual rate - Standard rate) x Actual hours

Direct labor efficiency variance = (Actual hours - Standard Hours) x Standard Rate

Reference no: EM1341493

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