Answer and Explanation:
According to the scenario, computation of the given data are as follows:-
1. Standard Quantity for Actual Output is
= $574600 ÷ $16.90
= 34000 Pounds
Actual Output = $34000 ÷ 2 = $17000
Unit Produced = 17,000 Units
2.Material Efficiency Variance is
= (Actual Quantity - Standard Quantity) × Standard Price
33,800 = (Actual Quantity - 34,000) ×$16.90
33800 ÷ $16.90 = Actual Quantity - $34,000
2000 = Actual Quantity - 34,000
Actual Quantity = 34,000 + 2000
= 36,000 Pounds
3.Material Rate Variance is
= (Actual Price - Standard Price) × Actual Quantity
$10,440 = (Actual Price - $16.90) × 36,000
$10440 ÷ 36000 = Actual Price - $16.90
-0.29+$16.90 = Actual Price
Actual Price = $16.61
4. Labor Efficiency Variance is
= (Actual Hour - Standard Hours) × Standard Rate
15500 = (Actual Hour - 263500 ÷ $15.50) × 15.50
15500 ÷ $15.50 = (Actual Hour - 17,000)
1000 + 17000 = Actual Hour
Actual Hour = 18,000
5. Labor Rate Variance is
= (Actual Rate - Standard Rate) × Actual Hours
$3600 = ( Actual Rate - $15.50) × 18000
$3600 ÷ 18000 = Actual Rate - $15.50
$0.2 + $15.50 = Actual Rate
Actual Rate = $15.70
We simply applied the above formulas
