Variance and Finance – 9 Refer to the table below for problems 1-A-E. Standard Cost Profile Lab Treatment SU #12 Expected Treatments = 1,000 Resource Quantity Variable Quantity Fixed Unit Cost...

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Answer To: Variance and Finance – 9 Refer to the table below for problems 1-A-E. Standard Cost Profile Lab...

Robert answered on Dec 26 2021
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Variance and Finance – 9
Refer to the table below for problems 1-A-E.
Standard Cost Profile
Lab Treatmen
t SU
#12
Expected Treatments
= 1,000
Resource Quantity
Variable
Quantity
Fixed
Unit
Cost
Variable
Cost
Average
Fixed
Cost
Average
Total
Cost
Labor 0.80 0.80 $16.00 $12.80 $12.80 $25.60
Supplies 7.00 0 1.10 7.70 0 7.70
Total $20.50 $12.80 $33.30
Actual Month
Cost
Lab Treatment
SU #12
Actual
Treatments =
1,100
Resource Quantity Used Unit Cost Total Cost
Labor 1,600 $17.00 $27,200
Supplies 7,500 1.00 7,500
Total $34,700
Calculate the following variances:
1a. Efficiency Variance – Labor

Labor Efficiency Variance = (Actual hours - Standard hours) x Standard rate


Actual hours = Actual quantity used (given) = 1,600

Standard hours = (Actual treatments x Standard quantity variable) + (Actual treatments x
Standard quantity fixed)
 (1,100 x 0.80) + (1,100 x 0.80) = 1,760

Labor Efficiency Variance = (1,600 – 1,760) x $25.60 = $4,096 Favorable

1b. Efficiency Variance –...
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