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Lander manufactures_Variance analysis

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Question;The impact of;variance on unit cost;Lander manufactures a;number of products the standard relating to one of these product are showing;along with actual cost data 4 may;standard;cost per unit Actual cost per;unit;Direct material;standard-1.80 feet at;3.00 per foot 5.40;actual 1.75 ft at;3.20 per foot 5.60;direct labor;standard 0.90 at 18.00per hr 16.20;Actual 0.95 hr at 17.40. per hr 16.53;variable overhead;standard 0.90 hr at 5.00 per hr 4.50;actual 0.95 hr at 4,60 per hr 4.37;total cost per unit 26.10;26.50;excess of actual cost;over standard cost per unit 0.40;the production;manager was please when he saw this report and he said 0.40 excess cost is well;within 2 percent limit management has set for acceptable variance and not to;worry about this product.;actual production 4;the month was 12,000 units. variable overhead cost is assign to products on the;basis of direct labor hrs. there were no beginning or ending inventory of material.;I need to prepare and;compute the following variance 4 may;material price and quantity variance;labor rate and;efficiency variance;variable overhead;rate and efficiency variance;how much of the 0.40;excess unit cost is traceable to each of the variance compute above how much of;the 0.40 excess unit cost is traceable to apparent inefficient use of labor;time;d u agree that the;excess unit cost is not of concern and explain

 

Paper#37297 | Written in 18-Jul-2015

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