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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
(c) Variable Overhead Expenditure
=Actual hours worked( actual overhead rate -standard overhead rate)
= 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
(c) Variable Overhead Expenditure
=Actual hours worked( actual overhead rate -standard overhead rate)
= 125,500 ( $4.80 - $5.00)
= 125,500 (-$0.20)
= - 25,100