Question & Answer: 5. Lido C actually standard and are given below ctual costs per unit for the most recent period, during which 400 units woe Actual 21 m 1 60 per St…..

5. Lido C actually standard and are given below ctual costs per unit for the most recent period, during which 400 units woe Actual 21 m 1 60 per Standard 15hat6 00 per hr Actual 14 hes 56 50 per te 1336 900 910 Actual 14h1 $310 per Total unit o 16 were no inventory of materials at the beginning or end of the period Required From the above information, compute the following variances Show whether the varance is avceurable unfavourable (U): a) Materials price variance b) Materials quantity variance c) Direct labour rate variance d) Direct labour efficiency variance e) Variable overhead spending variance 1) Variable overhead efficiency variance

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5. Lido C actually standard and are given below ctual costs per unit for the most recent period, during which 400 units woe Actual 21 m 1 60 per Standard 15hat6 00 per hr Actual 14 hes 56 50 per te 1336 900 910 Actual 14h1 $310 per Total unit o 16 were no inventory of materials at the beginning or end of the period Required From the above information, compute the following variances Show whether the varance is avceurable unfavourable (U): a) Materials price variance b) Materials quantity variance c) Direct labour rate variance d) Direct labour efficiency variance e) Variable overhead spending variance 1) Variable overhead efficiency variance

Expert Answer

 

VOH spending variance = Standard VOH cost – Actual VOH cost

400 * 5.10 – 400 * 4.34 = $ 304 ( favourable )

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