Answer:
Instructions are below.
Explanation:
Giving the following information:
Standard:
Direct materials 2.0 plates $2.75 per plate
Direct labor 0.2 hours $15.00 per hour
Variable manufacturing overhead 0.2 hours $7.00 per hour
Actual:
1,500 blood tests.
3,600 plates were purchased for $9,540
3,200 plates were used for blood tests
340 actual direct labor-hours were worked for $5,550
1)The materials price variance:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.75 - 2.65)*3,600= $360 favorable
2) The materials quantity variance:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (2*1,500 - 3,200)*2.75
Direct material quantity variance= $550 unfavorable
3) The labor rate variance:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (15 - 16.32)*340= $448.8 unfavorable
4) The labor efficiency variance:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1,500*0.2 - 340)*15
Direct labor time (efficiency) variance= $600 unfavorable
5) The variable overhead efficiency variance:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (1,500*0.2 - 340)*7
Variable overhead efficiency variance= $280 unfavorable
