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# Darlton Company has the following information available for the current year:

standard
Material 4.5 feet per unit at \$3.50 per foot

actual
Material 87 000 feet used at \$2.00 per foot

## 30 000 units were produced

calculate
a) Material price variances
solution
(AP - SP) AQp
= \$ (2.00 -\$3.50) 87,000
= - 1.50 (87, 000)
= - 130,500
Darlton Company has the following information available for the current year:

standard
Material 4.5 feet per unit at \$3.50 per foot

actual

## 30 000 units were produced

calculate
NB
You need to calculate the standard quantity of material before you can calculate the direct
material quantity variance
Solution:
Sq =totall unit produced x standard price per unit
= 30,000 x 4.5
= 135,000 units

Darlton Company has the following information available for the current year:

standard
Material 4.5 feet per unit at \$3.50 per foot

actual
Material 87 000 feet used at \$2.00 per foot

calculate
direct material usage(quantity) variances
= SP (AQ - SQ)
= \$3.50 (87 000 - 135,000)
= \$ 3.50 ( 48,000)
= \$16,800
Darlton Company has the following information available for the current year:
Standard
Variable overhead 6 machine hours at \$6.00 per hour

Actual
Variable overhead: 180,500 machine hours at \$5.00 per hour
= 125,500 ( \$4.80 - \$5.00)
= 125,500 (-\$0.20)
= - 25100
Darlton Company has the following information available for the current year:
Standard
Labour 5 direct labour hours at \$8.50 per unit

Actual
Labour 180 000 direct labour hours incurred per unit at \$8.35 per hour.
30 000 units were produced
Calculate
b) Direct Labour rate variances
= ( AR - SR ) AH
= ( \$8.35 - \$8.50) 122,400
= \$0.15 x 122,400
= \$18,360
ABC Company has the following information available for the current year:
Standard:
Material 3.5 feet per unit at \$2.60 per foot
Actual:
Material 96 000 feet used at \$2.50 per unit
calculate
(a) the material price variances
solution
(ai) (AP - SP) AQp
= \$ (2.50 -\$2.60) 96000
= - \$ 96000
ABC Company has the following information available for the current year:
Standard:
Material 3.5 feet per unit at \$2.60 per foot
Actual:
Material 96 000 feet used at \$2.50 per foot
25 500 units were produced

Calculate:
direct material quantity variance
Solution
(ii)DQV = SP (AQ - SQ)
= \$2.60 (96000 - 25,500 x 3.5)
= \$ 2.60 x 6,750
=\$ 17,550
ABC Company has the following information available for the current year:
Standard:
Material 3.5 feet per unit at \$2.60 per foot
Actual:
Material 96 000 feet used at \$2.50 per foot
Labour 122 400 direct labour hours incurred per unit at \$8.35 per hour

Calculate:
the direct labour rate
Solution:
(bi) DLR = ( AR - SR ) AH
= ( \$8.35 - \$8.50) 122,400
= \$0.15 x 122,400
= \$18,360

ABC Company has the following information available for the current year:
Standard:
Material 3.5 feet per unit at \$2.60 per foot
Actual:
Material 96 000 feet used at \$2.50 per unit
calculate
(a) the material price variances
solution
(ai) (AP - SP) AQp
= \$ (2.50 -\$2.60) 96000
= - \$ 96000
ABC Company has the following information available for the current year:
Standard:
Material 3.5 feet per unit at \$2.60 per foot
Actual:
Material 96 000 feet used at \$2.50 per foot
25 500 units were produced
Calculate:
direct material quantity variance
Solution
(ii)DQV = SP (AQ - SQ)
= \$2.60 (96000 - 25,500 x 3.5)
= \$ 2.60 x 6,750
=\$ 17,550
ABC Company has the following information available for the current year:
Standard:
Material 3.5 feet per unit at \$2.60 per foot
Actual:
Material 96 000 feet used at \$2.50 per foot
Labour 122 400 direct labour hours incurred per unit at \$8.35 per hour

Calculate:
the direct labour rate
Solution:
(bi) DLR = ( AR - SR ) AH
= ( \$8.35 - \$8.50) 122,400
= \$0.15 x 122,400
= \$18,360
ABC Company has the following information available for the current year:
Standard:
Labour 5 direct labour hours at \$8.50 per unit
Actual:
Labour 122 400 direct labour hours incurred per unit at \$8.35 per hour

Calculate:
labour efficiency variance
Solution:
SH = Totall units produced x standard hours
= 25,500 x 5h = 127,500 h

## (ii) Direct Labour efficiency variance

= ( SH - AH) SR
= (127,500 - 122,400) x \$ 8.50
= ( 5100) \$ 8.50
= \$43350

ABC Company has the following information available for the current year:
Standard:
Variable overhead 6 machine hours at \$5.00 per hour
Actual:
Variable overhead: 125 500 machine hours at \$4.80 per hour

Solution