Direct Material Price and Quantity Variances Actual Material Cost Budget for Material Based on Actual Quantity Standard Material Cost

Topics: Direct material price variance, Variable cost, Variance Pages: 4 (382 words) Published: October 9, 2011
2. Direct Material Price and Quantity Variances Actual Material Cost Budget for Material based on actual quantity Standard Material Cost

Actual Actual Actual Standard Standard Standard Quantity  Price Quantity  Price Quantity  Price ____________________________________________________________

__________________________ 5,500 kilograms purchased  $6 per kilogram 5,500 kilograms purchased  $5.50 per kilogram 5,000 kilograms allowed  $5.50 per kilogram

$33,000 $2,750 Unfavourable Direct material price variance

$30,250

$27,500

5,110 kilograms used



$5.50 per kilogram

$28,105 $605 Unfavourable Direct material quantity variance

Direct Labour Rate and Efficiency Variances ____________________________________________________________

_______________________ Actual Labour Cost Budget for labour based on actual DLH Standard Labour Cost

Actual Actual Actual Standard Standard Standard Hours  Rate Hours  Rate Hours  Rate ____________________________________________________________

__________________________ ______ 7,375 hours used  $16 per hour 7,375 hours used  $15.90 per hour 7,000 hours used  $15.90 per hour

$118,000 $737.50 Unfavourable Direct labour rate variance

$117,262.50 $5,962.50 Unfavourable Direct labour efficiency variance $6,700 Unfavourable Direct labour variance

$111,300

2.

Variable overhead variances:

Variable Overhead Spending And Efficiency Variances ____________________________________________________________

__________________________ Budget For Flexible Budget For Variable Overhead Variable Overhead (based on actual direct (based on standard direct labour Actual Variable Cost labour hours) hours allowed for actual output) ____________________________________________________________

__________________________ Standard Actual  Actual Actual  Standard Hours  Standard Hours Rate Hours Rate Allowed Rate (AH) (AVR) (AH) (SVR) (SH) (SVR)...
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