CHAPTER 20

Exercise 20 – 33 Materials And Labor Variances
Direct Materials (5lbs @ $4,00) $ 20,00
Direct Labor (2hrs @ $ 11,25) $ 22,50
Standart Prime Cost $ 42,50
the actualy results for next year are as follows.
Units Produced 175.000
Materials Purchase 930.000 pounds
Materials Used 925.000 pounds
Direct Labor 362.500 hours @ $ 11,15
1. Compute Price and Usage variances for materials
Price Variances for materials :
MPV = ( AP – SP ) AQ
= ( $ 4,10 - $ 4,0 ) 925.000
= 0,1 x 925.000 = $ 92.500
Usage Variances for materials :
MUV = ( AQ – SQ ) SP
= ( 925.000 – 875.000 ) $ 4
= $ 200.000
*) SQ = 5 LBS X 175.000 = 875.000

2. Compute the labor rate and labor efficiency variances
The labor rate variances :
LRV = ( AR – SR ) AH
= ( $ 11,15 - $ 11,25 ) 362.500
= $ 0,1 x 362.500 = $ 36.250
The labor efficiency variances :
LEV = ( AH – SH ) SR
= ( 362.500 – 350.000 ) 11,25 = $ 140.625
*) SH = 175.000 x 2 = 350.000
Exercise 20 – 35 Materials and Labor Variances
Direct materials (2,5 lbs @ 0,90 ) $ 2,25
Direct labor ( 0,75 @ $ 7,00 ) $ 5,25
Standart Prime Cost $ 7,50
During the year 53.000 pounds of material were purchase and used for the changcover
activity . there were 20.00 batched produced
Direct material $ 42.000

900 = 0.500 = $ 975 Usage Variances for materials : MUV = ( AQ – SQ ) SP = ( 19.000 / 53.8 – 0.000 ) 0.9 = $ 2. Planned Variances 1.000 / 14.000 = 50. Materials Variances Price Variances for materials : MPV = ( AP – SP ) AQ = ( 0.9 ) 53.000 / 4100 = 10.500 – 20.000 = 0.24 x 4.1 x 53.500 = 0.24 The labor efficiency variances : .Direct labor $ 102.100 = $ 984 *) AR = 42.000 = 0.300 *) AP = 42.75 x 20.900 hours) 1.8 Usage Variances for materials : MUV = ( AQ – SQ ) SP = ( 53.0 = $ 7. Material price and usage variances Price Variances for materials : MPV = ( AP – SP ) AQ = ( 1.700 *) SQ = 2.000 = 15.000 2.5 x 40.05 .000 ) 1 = $ 500 *) SQ = 0.05 x 19.5 x 20. Labor Rate and Efficiency Variances The labor rate variances : LRV = ( AR – SR ) AH = ( 10.100 = 0.000 So.000 ( for 14.000 2.15 x 14.000 – 50. Problem 20 – 46 Standard Costing .000 = $ 5.1 ) 19.85 – 7.0 ) 14. Labor Variances The labor rate variances : LRV = ( AR – SR ) AH = ( 6.238 *) AR = 102.85 The labor efficiency variances : LEV = ( AH – SH ) SR = ( 14.900 = $ 2.10 ) 4.900 – 15.000 *) SH = 0.900 = 6.000 = 20.24 .00 ) 7.

000 x 0.000 case produced with : Direct materials $ 40.000 / 52.1 = 4000 Terdapat perbandingan tarif varian antara the rate labor cariances antara 4100 jam dan 3900 jam .4000 ) 10 = $ 1000 *) SH = 40.1 = 4000 3.000 pounds of materials were purchased and used in production.910 (for 14.10 ) 3.900 = 0 x 3900 = $ 0 *) AR = 39.03 x 52. Actual labor cost 39000 The labor rate variances : LRV = ( AR – SR ) AH = ( 10 .000 = 0.77 .8 ) $4 Direct labor (1.8 ) 52. LEV = ( AH – SH ) SR = ( 4100 . There were 10.900 hours) 1.000 = $ 1560 *) AP = 40. Problem 20 – 47 Standard Costing Direct materials (5 lbs @ $ 0.000 x 0.000 / 3900 = 10 The labor efficiency variances : LEV = ( AH – SH ) SR = ( 3900 .00) $ 24 Standard prime cost $ 28 During december 52. If actual labor hours is 3900 .5 hours @ $ 16.000 Direct labor 236.4000 ) 10 = $ 1000 *) SH = 40.000 = 0. dimana pada LRV dengan 4100 jam terdapat rate sebesar $ 984 sedangkan LRV dengan 3900 jam terdapat rate sebesar $ 0 sedangkan pada LEV nya pada nilai yang sama dan tidak ada perubahan.77 – 0. Compute the materials variances Price Variances for materials : MPV = ( AP – SP ) AQ = ( 0.

16 ) 14900 = 0.000 2.910 / 14.1 x 14.900 = $ 1490 *) AR = 236.9 . What are rhe advantage and disadvantage that can results from the use of a standard costing system ? .5 = 15.9 The labor efficiency variances : LEV = ( AH – SH ) SR = ( 14.000 – 50.900 – 15.000 ) 16 = 100 x 16 = $ 1600 *) SH = 10.000 = 50.000 x 1. Compute the labor variances The labor rate variances : LRV = ( AR – SR ) AH = ( 15.8 = 2000 x 0.8 = $ 1600 *) SQ = 5 x 10. Usage Variances for materials : MUV = ( AQ – SQ ) SP = ( 52.900 = 15.000 ) 0.000 3.