Solutions for chapter 11Problem 1:

a ) Material Price Variance = $5,700 unfavorable

Material Quantity Variance = $23,484 unfavorable

Problem 2:

a) Material Price Variance = = $4,050 favorable

Material Quantity Variance = =$2,365 unfavorable

Problem 3:

a)

OctoberNovember December

Labor Rate Variance

(AR - SR) AH $360 F$1,175 U$1,580 U

Labor Efficiency Variance

(AH - SH) SR$750 U$675 U$450 U

Problem 4:

a) Labor Rate Variance : = $6,300 unfavorable

Labor Efficiency Variance = $11,550 favorable

b) Contribution margin per website $ 435

c)

Actual contribution margin per Web site$ 470

Problem 5:

a) Standard Cost per unit: = $28.45

b) Material Price Variance = $40,000 unfavorable

Material Quantity Variance = $14,400 unfavorable

Labor Rate Variance = $26,364 favorable

Labor Efficiency Variance = $5,864 unfavorable

Controllable Overhead Variance = $50,000 unfavorable

Overhead Volume Variance = $8,250 favorable

Problem 6: a) Standard Cost per unit: = $69.25 b) Material Price Variance = $ 27,500 unfavorableMaterial Quantity Variance = $10,625 unfavorable

Labor Rate Variance = $68,409 favorable

Labor Efficiency Variance =$39,059 unfavorable

Controllable Overhead Variance =$4,200 unfavorable

Overhead Volume Variance = $875 unfavorable

Problem 7:a) Standard overhead rate per unit =$11.60

Material Price Variance =$2.13 per pound

Material Quantity Variance = 37,500 pounds

b) Labor Rate Variance = $10.62 per hour

Labor Efficiency Variance = 36,000 hours

Controllable Overhead Variance = $3,000 favorable

Overhead Volume Variance =$18,000 favorable

c.Variance Summary

Material price variance($15,000) favorable

Material quantity variance3,125 unfavorable

Labor rate variance22,000 unfavorable

Labor efficiency variance(7,000) favorable

Controllable overhead variance(3,000) favorable

Overhead volume variance (18,000) favorable

Total($17,875) favorable

Problem 8:

a) Attorneys -- Business Incorporations

Labor rate variance $1,380U

Labor efficiency variance $1,000F

b) Attorneys--Will Preparation

Labor rate variance =$190U

Labor efficiency variance = $1,225F

c) Paralegals -- Business Incorporations

Labor rate variance $270U

Labor efficiency variance $950F

d. Paralegals -- Will PreparationLabor rate variance =$475 U

Labor efficiency variance = $125U

Problem 9:a) Material Price Variance (Material A) = $4,625 favorable

Material Price Variance (Material B ) = $1,000 favorable

Material Quantity Variance (Material A) = $1,365 unfavorable

Material Quantity Variance (Material B) =$825 unfavorable

Labor Rate Variance =$900 unfavorable

Labor Efficiency Variance =$600 unfavorable

Controllable Overhead Variance =$2,000 favorable

Overhead Volume Variance =$4,000 unfavorable

Variance Summary

Problem 10a) Standard cost per unit = $40.00

Material Price Variance = $12,500 unfavorable

Material Quantity Variance = $125,000 unfavorable

Labor Rate Variance= $47,541 unfavorable

Labor Efficiency Variance= = $39,959 unfavorable

Controllable Overhead Variance =$355,000 favorable

Overhead Volume Variance = =$5,000 unfavorable

b.Variance Summary

Problem 11

Labor Rate Variance = $5,100 unfavorable

Labor Efficiency Variance =$333 unfavorable

Problem 14: a. Labor rate variance = $8,000 favorable

Labor efficiency variance = $6,000 unfavorable

b. Controllable overhead variance = $19,600 unfavorable

Overhead volume variance = $2,885 unfavorable

Applied overhead = 292,115

Flexible budget overhead = $295,000

Material price variance (A)

$(4,625)

favorable

Material price variance (B)

(1,000)

favorable

Material quantity variance (A)

1,365

unfavorable

Material quantity variance (B)

825

unfavorable

Labor rate variance

900

unfavorable

Labor efficiency variance

600

unfavorable

Controllable overhead variance

(2,000)

favorable

Overhead volume variance

4,000

unfavorable

Total

$65

unfavorable

Material price variance

$12,500

unfavorable

Material quantity variance

125,000

unfavorable

Labor rate variance

47,541

unfavorable

Labor efficiency variance

39,959

unfavorable

Controllable overhead variance

(355,000)

favorable

Overhead volume variance

5,000

unfavorable

Total

$(125,000)

favorable