Determine the quantity variance


The following information is for the standard and actual costs for the Happy Corporation.

Standard Costs:
Budgeted units of production - 16,000 (80% of capacity)
Standard labor hours per unit - 4
Standard labor rate - $26 per hour
Standard material per unit - 8 lbs.
Standard material cost - $ 12 per pound
Standard variable overhead rate - $15 per labor hour
Budgeted fixed overhead - $640,000
Fixed overhead rate is based on budgeted labor hours at 80% capacity.

Actual Cost:
Actual production - 16,500 units
Actual material purchased and used - 130,000 pounds
Actual total material cost - $1,600,000
Actual labor - 65,000 hours
Actual total labor costs - $1,700,000
Actual variable overhead - $1,000,000
Actual fixed overhead - $640,000
Actual variable overhead - $1,000,000

Determine:the quantity variance, price variance, and total direct materials cost variance; he time variance, rate variance, and total direct labor cost variance; and the volume variance, controllable variance, and total factory overhead cost variance.

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Accounting Basics: Determine the quantity variance
Reference No:- TGS0716597

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