{"id":9523,"date":"2021-10-19T09:54:40","date_gmt":"2021-10-19T09:54:40","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/variance-analysis-accounting-homework-help\/"},"modified":"2021-10-19T09:54:40","modified_gmt":"2021-10-19T09:54:40","slug":"variance-analysis-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/variance-analysis-accounting-homework-help\/","title":{"rendered":"Variance analysis | Accounting homework help"},"content":{"rendered":"
\n

Helix Company produces several products in its factory, including a karate robe. The company
uses a standard cost system to assist in the control of costs. According to the standards that have
PROBLEM 10\u201314 Comprehensive\u00a0Variance Analysis<\/span>\u00a0[LO1, LO2, LO3]
Vitalite,\u00a0Inc<\/span>., produces a number of products, including a body-wrap kit. Standard variable costs
relating to a single kit are given below:
Standard Costs and Variances 453
During April, the factory worked only 760\u00a0direct labor<\/span>-hours and produced 2,000 robes. The
following\u00a0actual costs<\/span>\u00a0were recorded during the month:
Raw Material<\/span>\u00a0Standard Labor Time
Product X342 Y561 Sintering Finishing
Alpha8 . . . . . . . . . . . . 1.8 kilos 2.0 liters 0.20 hours 0.80 hours
Zeta9 . . . . . . . . . . . . . 3.0 kilos 4.5 liters 0.35 hours 0.90 hours
Information relating to materials purchased and materials used in production during May
follows:
Material Purchases\u00a0Purchase Cost<\/span>\u00a0Standard Price Used in Production
X342 . . . . . . . . . . . 14,000 kilos $51,800 $3.50 per kilo 8,500 kilos
Y561 . . . . . . . . . . . 15,000 liters $19,500 $1.40 per liter 13,000 liters
The following additional information is available:
a. The company recognizes price variances when materials are purchased.
b. The standard labor rate is $20.00 per hour in Sintering and $19.00 per hour in Finishing.
c. During May, 1,200 direct labor-hours were worked in Sintering at a total\u00a0labor cost<\/span>\u00a0of $27,000,
and 2,850 direct labor-hours were worked in Finishing at a total labor cost of $59,850.
d. Production during May was 1,500 Alpha8s and 2,000 Zeta9s.
been set for the robes, the factory should work 780 direct labor-hours each month and produce
1,950 robes. The standard costs associated with this level of production are as follows:
Total
Per Unit
of Product
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . $35,490 $18.20
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,020 3.60
Variable manufacturing overhead (based on
direct labor-hours) . . . . . . . . . . . . . . . . . . . . $2,340 1.20
$23.00
Total
Per Unit
of Product
Direct materials (6,000 yards) . . . . . . . . . . $36,000 $18.00
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . $7,600 3.80
Variable manufacturing overhead . . . . . . . $3,800 1.90
$23.70
At standard, each robe should require 2.8 yards of material. All of the materials purchased during
the month were used in production.
Required:
Compute the following variances for April:
1. The materials price and quantity variances.
2. The labor rate and efficiency variances.
3. The variable manufacturing overhead rate and efficiency variances<\/span><\/p>\n

\u00a0<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Helix Company produces several products in its factory, including a karate robe. The companyuses a standard cost system to assist in the control of costs. According to the standards that havePROBLEM 10\u201314 Comprehensive\u00a0Variance Analysis\u00a0[LO1, LO2, LO3]Vitalite,\u00a0Inc., produces a number of products, including a body-wrap kit. Standard variable costsrelating to a single kit are given below:Standard […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-9523","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/9523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=9523"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/9523\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=9523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=9523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=9523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}