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    Variance Analysis - Practice Exercises

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    20220633
    The document contains three practice problems related to variance analysis. The first problem has 14 questions calculating different types of variances. The second problem involves filling in blanks with standard costs and actual costs. The third problem involves calculating standard, budgeted, and actual materials costs and hours for a company.

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    Variance Analysis - Practice Exercises

    Uploaded by

    20220633
    12 views1 page
    The document contains three practice problems related to variance analysis. The first problem has 14 questions calculating different types of variances. The second problem involves filling in blanks with standard costs and actual costs. The third problem involves calculating standard, budgeted, and actual materials costs and hours for a company.

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    Variance Analysis_Practice Exercises

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    The document contains three practice problems related to variance analysis. The first problem has 14 questions calculating different types of variances. The second problem involves filling in blanks with standard costs and actual costs. The third problem involves calculating standard, budgeted, and actual materials costs and hours for a company.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    12 views1 page

    Variance Analysis - Practice Exercises

    Uploaded by

    20220633
    The document contains three practice problems related to variance analysis. The first problem has 14 questions calculating different types of variances. The second problem involves filling in blanks with standard costs and actual costs. The third problem involves calculating standard, budgeted, and actual materials costs and hours for a company.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    VARIANCE ANALYSIS Practice Exercises

    PROBLEM 1
    Romanilla Company provides the following production data:
    Total standard overhead cost per unit of product: 4 hours at P 3.00 per hour = P 12.00 per unit

    Budgeted fixed factory overhead P 20,000


    Normal production 2,500 units
    Actual production 2,000 units
    Actual hours 7,500 hours
    Actual factory overhead incurred (75% fixed) P 26,000

    REQUIRED: Determine the following:


    1. Budgeted factory overhead 8. Variable efficiency variance
    2. Standard FOH based on standard hours 9. Variable spending variance
    3. Budgeted FOH based on actual hours 10.Fixed spending variance
    4. Budgeted FOH based on standard hours 11. Variable controllable variance
    5. Controllable variance 12. Fixed volume variance
    6. Volume variance 13. Variable FOH variance
    7. Spending variance 14. Fixed FOH variance

    PROBLEM 2
    • Standard variable costs per unit:
    A) Materials: 4 pounds @ P ______ P _____
    B) Direct Labor: _____ hours @ P 12.00 P 6.00
    C) Variable overhead: P 8 per direct labor hour P _____
    • Production 8,000 units
    • Materials purchases, 32,000 pounds P 62,000
    • Materials used at standard prices, 31,200 pounds P ______
    • Direct labor (actual) _______ hours P 47,200
    • Material purchases price variance P 2,000 adverse
    • Material use variance P ______
    • Direct labor rate variance P 2,000 favorable
    • Direct labor efficiency variance P ______
    • Variable overhead spending variance P 1,500 favorable
    • Variable overhead efficiency variance P ______
    • Actual variable overhead cost P ______

    REQUIRED:
    Fill-in the blanks.

    PROBLEM 3
    Kodaki Company uses a standard cost system to help control costs and has established the following
    standards for one unit of its main product, The AwesomeTripod:
    Inputs Standards
    Direct Materials 3 metal bars per tripod at P 2.00 per bar
    Direct labor ½ labor hour per tripod at P 10 per hour

    At the start of the month, the budget includes a planned production of 100 units of tripod based on normal
    capacity; at the end of the month, actual production was 120 units of tripod, which resulted to using 400 bars
    of metal, purchased at a cost of P 2.10 per bar.
    1. Based on the BUDGETED production of 100 units:
    A) How many metal bars must the company plan to use? (Budgeted quantity)
    B) How much materials cost is included in the budget? (Budgeted cost)
    2. Determine the actual cost of materials used. (Actual cost)
    3. Based on the ACTUAL production of 120 units:
    A) How many metal bars should have been used? (Standard quantity)
    B) How much materials cost should have been incurred? (Standard materials cost)
    C) How many labor hours should have been spent? (Standard hours)

    /mddsr

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