Variance analysis | Accounting homework help

Helix Company produces several products in its factory, including a karate robe. The company
uses a standard cost system to assist in the control of costs. According to the standards that have
PROBLEM 10–14 Comprehensive Variance Analysis [LO1, LO2, LO3]
Vitalite, Inc., produces a number of products, including a body-wrap kit. Standard variable costs
relating to a single kit are given below:
Standard Costs and Variances 453
During April, the factory worked only 760 direct labor-hours and produced 2,000 robes. The
following actual costs were recorded during the month:
Raw Material Standard Labor Time
Product X342 Y561 Sintering Finishing
Alpha8 . . . . . . . . . . . . 1.8 kilos 2.0 liters 0.20 hours 0.80 hours
Zeta9 . . . . . . . . . . . . . 3.0 kilos 4.5 liters 0.35 hours 0.90 hours
Information relating to materials purchased and materials used in production during May
follows:
Material Purchases Purchase Cost Standard Price Used in Production
X342 . . . . . . . . . . . 14,000 kilos \$51,800 \$3.50 per kilo 8,500 kilos
Y561 . . . . . . . . . . . 15,000 liters \$19,500 \$1.40 per liter 13,000 liters
The following additional information is available:
a. The company recognizes price variances when materials are purchased.
b. The standard labor rate is \$20.00 per hour in Sintering and \$19.00 per hour in Finishing.
c. During May, 1,200 direct labor-hours were worked in Sintering at a total labor cost of \$27,000,
and 2,850 direct labor-hours were worked in Finishing at a total labor cost of \$59,850.
d. Production during May was 1,500 Alpha8s and 2,000 Zeta9s.
been set for the robes, the factory should work 780 direct labor-hours each month and produce
1,950 robes. The standard costs associated with this level of production are as follows:
Total
Per Unit
of Product
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . \$35,490 \$18.20
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . \$7,020 3.60
direct labor-hours) . . . . . . . . . . . . . . . . . . . . \$2,340 1.20
\$23.00
Total
Per Unit
of Product
Direct materials (6,000 yards) . . . . . . . . . . \$36,000 \$18.00
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . \$7,600 3.80
Variable manufacturing overhead . . . . . . . \$3,800 1.90
\$23.70
At standard, each robe should require 2.8 yards of material. All of the materials purchased during
the month were used in production.
Required:
Compute the following variances for April:
1. The materials price and quantity variances.
2. The labor rate and efficiency variances.
3. The variable manufacturing overhead rate and efficiency variances

Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors: