NO.

1
a. Calculate the materials price variance and indicate whether it is favorable or unfavorable.
Actual rate = 196,600 / 19,000 = $10.34
Material rate variance = (Actual rate - Standard rate) x Actual quantity utilised
= ( 10.34 - 10) x 15,000 = 5,100 Unfavorable
b. Calculate the materials usage variance and indicate whether it is favorable or unfavorable.
(Actual quantity - Standard quantity for actual production) x standard rate
= ( 15,000 - 1500 x10 ) x10 = 0
c. Calculate the labor rate variance and indicate whether it is favorable or unfavorable.
Actual rate = 105,000 / 6,600 = 15.9 per hour
Labor rate variance = (Standard rate - Actual rate ) x Actual hours applied
= ( 16 - 15.9 ) x 6,600 = 660 Favorable
d. Calculate the labor efficiency variance and indicate whether it is favorable or unfavorable.
( Standard hours for actual production - Actual hours) x standard rate
= (1,500 x 4 - 6,600 ) x 16 = 9,600 Favorable

NO 2
a. Calculate the incremental cost per unit to Robsings for this order?

Direct material (10,000 x $10) $100,000

Direct labor (10,000 x $13) $130,000
Variable overhead (10,000 x $5) $50,000
Variable selling expense (10,000 x $2) $20,000
Total Incremental Cost $300,000

b. Determine the effects of this special order to Robsings’ income

Effect on profit = [(10,000 x $50) - $300,000] = $500,000 - $300,000 = $200,000
So, the special order should be accepted.

NO. 3

Revenue (135x6,600) 900.000

COGS 595.000
Gross profit 305.000
EXPENSES  
Selling & Adminstrative expenses 80.000
Income from operations 225.000
Income tax expenses 108.000
Net income 117.000