SunAir Boat Builders, Inc.
Question 1: Direct Material Variance (Glass Cloth) | | | | Standard usage (a) | Actual Usage (b) | Difference (c) = (b) - (a) | Standard Price (e) | Usage Variance (f) = (c)*(e) | Favorable/
Unfavorable? | 51600 | 54000 | 2400 | 2 | 4800 | Unfavorable | Standard Price
(g) | Actual Price
(h) | Difference (i) = (h) - (g) | Actual Quantity
(j) | Price Variance
(k) = (i) * (j) | Favorable/
Unfavorable? | 2 | 1.8 | -0.20 | 54000 | -10800 | Favorable |
Total Variance of Glass Cloth = (f)+(k) = -6000 (FAVORABLE) Direct Material Variance (Glass Mix) | | | | Standard usage (l) | Actual Usage (m) | Difference (n) = (m) - (l) | Standard Price (o) | Usage Variance (p) = (n)*(o) | Favorable/
Unfavorable? | 17200 | 19000 | 1800 | 3.75 | 6750 | Unfavorable | Standard Price
(q) | Actual Price
(r) | Difference (s) = (r) - (q) | Actual Quantity
(t) | Price Variance
(u) = (s) * (t) | Favorable/
Unfavorable? | 3.75 | 4.09 | 0.34 | 19000 | 6460 | Unfavorable |
Total Variance of Glass Mix = (p)+(u) = 13210 (UNFAVORABLE)
Direct Material Variance (Glass Cloth + Glass Mix) = - 6000 + 13210 = 7210 (UNFAVORABLE) Direct Labor Variance (Mixing) | | | | | Standard usage (A) | Actual Usage (B) | Difference (C) = (B) - (A) | Standard Rate
(D) | Efficiency Variance (F) = (C)*(E) | Favorable/
Unfavorable? | 215 | 210 | -5 | 20.25 | -101.25 | Favorable | Standard Rate
(G) | Actual Rate
(H) | Difference (I) = (H) - (G) | Actual Time
(J) | Rate Variance
(K) = (I) * (J) | Favorable/
Unfavorable? | 20.25 | 21.37 | 1.12 | 210 | 235.2 | Unfavorable |
Total Variance of Mixing = (F)+(K) = 133.95 (UNFAVORABLE) Direct Labour Variance (Molding) | | | | | Standard usage (L) | Actual Usage (M) | Difference (N) = (M) - (L) | Standard Rate (O) | Efficiency Variance
(P) = (N)*(O) | Favorable/