Expense Variance and Cost Analysis

    August 1, 2024

1. Assume that the amount of one of a company’s variable expenses in its flexible budget is $40,000. The actual amount of the expense is $42,600 and the amount in the company’s planning budget is $44,000. The spending variance for this expense is:
2. Assume that a company has two cost drivers—number of courses and number of students. The planned number of courses and students were 5 and 100, respectively. The actual number of courses and students were 6 and 110, respectively. One of the company’s expenses is influenced by both cost drivers and it has a fixed element as well. Its cost formulas are $48 per course, $4 per student, and $1,000 per period. The total cost included in the planning budget for this expense would be:
3. Assume the following:
The standard price per pound is $2.00.
The standard quantity of pounds allowed per unit of finished goods is 4 pounds.
The actual quantity of materials purchased and used in production is 50,300 pounds.
The actual purchase price per pound of materials was $2.30.
The company produced 13,000 units of finished goods during the period.
What is the materials price variance?
4. Assume the following information appears in the standard cost card for a company that makes only one product:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 5 pounds $ 11.00 per pound $ 55.00
Direct labor 2 hours $ 17.00 per hour $ 34.00
Variable manufacturing overhead 2 hours $ 3.00 per hour $ 6.00
During the most recent period, the following additional information was available:
21,400 pounds of material was purchased at a cost of $10.50 per pound.
All of the material that was purchased was used to produce 3,900 units.
8,000 direct labor-hours were recorded at a total cost of $132,000.
What is the direct materials price variance?
5. Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year:
Total budgeted fixed overhead cost for the year $ 300,000
Actual fixed overhead cost for the year $ 283,000
Budgeted direct labor-hours 60,000
Actual direct labor-hours 56,000
Standard direct labor-hours allowed for the actual output 58,000
What is the fixed overhead budget variance?

Trust your assignments to an essay writing service with the fastest delivery time and fully original content.

Verified