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The following data were drawn from the records of Fanning Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 4,100 units 3.50 pounds @ $ 1.20 per pound 3.60 hours @ $4.20 per hour $ 22,550 4,200units 3.20 pounds @ $1.70 per pound 4.00 hours @ $3.60 per hour $ 18,650 Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Fanning uses the number of units as the allocation base. f. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U). g. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).

The following data were drawn from the records of Fanning Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 4,100 units 3.50 pounds @ $ 1.20 per pound 3.60 hours @ $4.20 per hour $ 22,550 4,200units 3.20 pounds @ $1.70 per pound 4.00 hours @ $3.60 per hour $ 18,650 Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Fanning uses the number of units as the allocation base. f. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U). g. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 12E: Using variance analysis and interpretation Last year, Endicott Corp. adopted a standard cost system....
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The following data were drawn from the records of Fanning Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs. Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Fanning uses the number of units as the allocation base. Req A f. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U). g. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Req B Standard price Actual price Req C 4,100 units pounds @ $ 1.20 per pound 3.50 3.60 hours @ $4.20 per hour $ 22,550 4,200 units 3.20 pounds @ $1.70 per pound 4.00 hours @ $3.60 per hour Req D Standard quantity for flexible budget Actual quantity used $ 18,650 Materials Variance Information Table Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. Note: Enter "Standard price" and "Actual price" to 2 decimal places. < Req A Req E to G per pound per pound pounds pounds Req B >
Transcribed Image Text:The following data were drawn from the records of Fanning Corporation. Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs. Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours. d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U). e. Calculate the predetermined overhead rate, assuming that Fanning uses the number of units as the allocation base. Req A f. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U). g. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U). Complete this question by entering your answers in the tabs below. Req B Standard price Actual price Req C 4,100 units pounds @ $ 1.20 per pound 3.50 3.60 hours @ $4.20 per hour $ 22,550 4,200 units 3.20 pounds @ $1.70 per pound 4.00 hours @ $3.60 per hour Req D Standard quantity for flexible budget Actual quantity used $ 18,650 Materials Variance Information Table Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity. Note: Enter "Standard price" and "Actual price" to 2 decimal places. < Req A Req E to G per pound per pound pounds pounds Req B >
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