Standard Cost and Operating Performance Measures

Input data for green cells only

Direct Material Variances:

Actual quantity used 14,000
Actual price $ 0.60
Actual quantity purchased 18,000
Standard quantity 12,000
Standard price $ 0.50

Material price variance $ 1,800 Unfavorable

Material quantity variance 1,000 Unfavorable
Total material variance $ (2,800) Unfavorable
Direct Labor Variances:
Actual hours 4,000 Total actual cost $ 39,000
Actual rate $ 9.75 Total standard cost 36,000
Standard hours 3,600 Total variance $ (3,000) Unfavorable
Standard rate $ 10.00

Labor rate variance $ (1,000) Favorable

Labor efficiency variance 4,000 Unfavorable
Total labor variance $ (3,000) Unfavorable
Variable Manufacturing Overhead Variances:
Actual hours 4,000 Total actual cost $ 20,800
Actual rate $ 5.20 Total standard cost 18,000
Standard hours 3,600 Total variance $ (2,800) Unfavorable
Standard rate $ 5.00

Variable overhead
spending variance $ 800 Unfavorable
Variable overhead
efficiency variance 2,000 Unfavorable
Total variance $ (2,800) Unfavorable
Unfavorable

Unfavorable