Variance

Problem A. SUPERIOR A. SUPERIOR COMPANY, which started business on April 1, uses a standard cost sste! in accountin" #or !anu#actured costs$ %he standard costs #or a unit o# its product are& Materials '( )ilos at P* per )ilo+ $ $ $ $ $ $ $ $ $ $ $ $ $ P$-.abor '1 hour at P/ per hour+ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ /$-0acto actorr oer oerhe head ad '23 '234 o# dir direct ect labor abor cost+ st+ $ $ $ $ *$-$- %otal  %otal standard cost per unit $ $ $ $ $ $ $ $ $ $ $ $ P1*$-55555 0ollowin" data were "athered #ro! Superior6s records records #or April& Units produce produced d $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $$ $ $ $ 3,--3,--Units sold $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ /,--Sales $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ P1--,--Purchases '11,--- )ilos+ $ $ $ $ $ $ $ $ $ $ $ $ $ *7,3-Material price ariance 'appli 'applicab cable le to to April April purcha purchases ses+$ +$ $ $ P33P33- un#a un#aor orabl able e Actual 8uantit o# !aterial used$ $ $ $ $ $ $ $1-,3-- )ilos Actual labor hours hours wor)ed wor)ed $ $ $ $ $ $ $ $ $ $ $ $ /,7-- hours 9irect labor rate ariance $ $ $ $ $ $ $ $ $ $ $ $ $ P7-- #aorable 0actor oerhead total ariance $ $ $ $ $ $ $ $ P3-- un#aorable a$ :hat was was the !ateri !aterial al 8uantit 8uantit arianc ariance e #or April; April; b$ ed oerhead '1$3- hours at P17$--+ ?ariable oerhead '1$3- hours at P1-$--+  %otal application rate

P(2$-13$-P/($--

.ustre uses e>pected olu!e o# (-,--- units$ 9urin" the ear, .ustre used *1,3-- direct labor hours #or the production o# (-,--- units$ Actual oerhead costs were P3/3,--- B>ed and P*-7,2-- ariable$ a$ %he a!ount o# ariable oerhead spendin" ariance b$ %he total oerhead controllable ariance c$ %he oerhead e=cienc ariance

Problem E. @oF#orF@oodG proides ou with the #ollowin" data& Actual B>ed #actor oerhead costs$ $ $ $ $ $ $ $ $ $ $ P*(,--Actual ariable #actor oerhead costs $$ $ $ $ $ $ $ 7,--Actual direct labor hours $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1(,--Standard direct labor hours$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1-,--9irect labor hours at nor!al capacit$ $ $ $ $ $ $ $ $ 1,--0le>ible #actor oerhead bud"et& P*-,--- H P1$-- per direct labor hour Required: 9eter!ine each o# the #ollowin"& a$