Cheng company uses a standard cost accounting system. During January, it reported the following manufacturing variances. Materials price variance RM 1,220 U Labor quantity variance RM 840 Materials quantity variance 760 F Overhead variance 740 U Labor price variance 450 In addition, 8,100 units of product were sold at 7 per unit. Each unit sold had a standard cost of 4. Selling and administrative expenses were 7,890 for the month. Prepare an income statement for management for the month ended January 31, 2018.

Q: The Claus Company uses standard costing for the single product the company makes and sells. The…

A: Variance is considered as the difference between budgeted value and actual results. The management…

Q: Overhead information for Cran-Mar Company for October follows:           Total factory overhead…

A: Production volume variance:   Production volume variance is a statistic used by businesses to…

Q: Lewis Company's standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of…

A: Total Labor Variance =  ( AH * AR - SR * SH )   Labor Price Variance =  ( SR - AR ) * AH…

Q: A manufacturer reports the following standard cost card. For June, the company made 1,200 units and…

A: The total cost variance is equivalent to the contrast between actual expenses and planned expenses.…

Q: During June, the Conchran Manufacturing Company's costing system reported several variances that the…

A: Standard costing is an costing method where it was used to identify variances between actual and…

Q: Agus, Inc. uses standard costing for the accounting for its product. The budget officer provided the…

A: Material usage variance refers to the variance in the actual direct material cost from the standard…

Q: For the month of August, M Company’s records disclosed the following data relating to direct labor:…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: The following data were taken from the records of Griggs Company for December: Administrative…

A: Income statement is the statement showing the net revenue after deducting all the direct as well as…

Q: Barbaro Production Company has developed the following standards for one of its products: STANDARD…

A: Direct Labor efficiency variance = (standard hours - actual hours)*standard rate Variable overhead…

Q: The Claus Company uses standard costing for the single product the company makes and sells. The…

A: Solution....   (A).  Labor efficiency variance  = (Standard hours - actual hours ) * standard rate…

Q: Reed Corp. has set the following standard direct materials and direct labor costs per unit for the…

A: Definition: Direct material variances: The difference between the actual material cost per unit and…

Q: The following information pertains to UV company. The direct labor standards for a product are 5…

A: Variance analysis is performed to find the deviations by comparing actual performance done with the…

Q: Information on Kimble Company's direct labor costs for the month of January is as follows: Actual…

A: Note:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Labor rate variance = (standard rate - actual rate) * actual hours   -1400 = (standard rate -…

Q: Ipad Man Inc. has provided the following standard direct labor cost for its product: Standard…

A: Standard rate of labor = P15 per direct labor hour Actual rate of labor = P36,000 / 1800 = P20 per…

Q: Matinna Co. maintains no inventories and has the following data pertaining to one of its direct…

A: DIRECT MATERIAL PRICE VARIANCE IS THE DIFFERENCE BETWEEN THE ACTUAL AMOUNT SPENT ON DIRECT MATERIAL…

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Controllable variance = Budgeted overhead (BO)- Actual overhead(AO)

Q: The Claus2 Company uses standard costing for the single product the company makes and sells. The…

A: Labor rate variance refers to the concept which evaluates the gap between the actual expenses…

Q: Using the following data from the records of Starts Inc. for November of the current year, prepare…

A: Since the cost of goods sold given in the question is standard, any favorable direct material,…

Q: Prepare an income statement for management for the month ended January 31, 2020 with the given…

A: Standard costing is an costing method in which it was used to identify variances between actual and…

Q: Dunso Company uses a standard cost accounting system. During January, the company reported the…

A: Here gross profit should  be adjusted with variances to get net profit (actual)

Q: The following data were taken from the records of Arseneault Company for December: Administrative…

A: Income statement shows the profit and loss which is earned or incurred during the specified period…

Q: The management accountant of a business is calculating the monthly variances to review and control…

A: Sales volume profit variance is the variance between budgeted units sold and actual units sold with…

Q: Nisqually Corporation has established the following labor standards for a particular product:…

A: Variance is considered as a change between the expected value and actual results. It may be labor…

Q: Use the following information to prepare a standard cost income statement for Whitmer Company for…

A: Formula: Net profit = Revenues - expenses Deduction of expenses from revenues derives the net…

Q: The following data were taken from the records of Griggs Company for December: Administrative…

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Prepare an income statement (through income before income tax) for presentation to management, using…

A: The income statement of an organization shows all incomes or revenue and expenses of an organization…

Q: Devoto Incorporated has provided the following data concerning one of the products in its standard…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: For the year, the following data are available: Budgeted production Actual production Sales Finished…

A: Under Direct costing method, the fixed production costs are treated as period cost and not included…

Q: Sara metal frames over the period of years using standard costing system in its unit and has April…

A: Various incomes and expenses of an organisation will be shown in the income statement, where it…

Q: Williams Manufacturing Company has established the following materials standards for a particular…

A: Material quantity variance refers to the variance in the cost of material due to the difference in…

Q: Ipod Man Inc. has debited direct labor efficiency variance in the amount of P3,000 in the journal…

A: Standard hours for actual production = 3200*2 = 6400 hours Actual direct labor hours = 6600 hours…

Q: Mindanao Enterprises uses standard costing. For the month company reported the following data: I.…

A: Labor efficiency variance = (Actual hours worked - Standard hours allowed)*Standard rate per hour…

Q: Alpine Productions uses a standard cost system for recording transactions. Alpine reported the…

A: Al unfavorable variances should be  deducted and favorable variances to be added

Q: Using the following data from the records of Starts Inc. for November of the current year, prepare…

A: Formulas:

Q: Standish Company manufactures consumer products and provided the following information for the month…

A: Overhead represents the indirect cost involved in the production process of the company.

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Labor rate variance = (standard rate - actual rate) * actual hours -1400 = (standard rate -…

Q: Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using…

A: Material Price Variance = ( Standard Price - Actual Price ) x Actual Quantity Material Quantity…

Q: The following labor standards have been established for a particular product:     Standard…

A: Labor Rate Variance:-It means variance which occurs when there is a difference between the actual…

Q: Sharp Company manufactures a product for which the following standards have been set: Standard…

A: 1a. Material quantity variance = $2250 U(SQ - AQ) x SP = -$2250(2350 x 3 - AQ) x $5 = -$2250Actual…

Q: Alpine Productions uses a standard cost system for recording transactions. Alpine reported the…

A: Given that the Alpine Productions uses a standard cost system

Q: The Claus Company uses standard costing for the single product the company makes and sells. The…

A: Solution: Labor efficiency variance = P1,600 F (SH - AH) * SR = P1,600 (SH - 3800) * P8 = P1,600…

Q: materials purchased and used   16,500 pounds   The standard cost card shows that a finished product…

A: Solution...   Standard rate = $5  Actual rate = $5 * 96% = $4.80  Standard quantity  = 4,000 units *…

Q: The following materials standards have been established for a particular raw material used in the…

A:

Q: Javonte Co. set standards of 3 hours of direct labor per unit of product and $15 per hour for the…

A: Given the following information: Standard direct labor hour per unit: 3 hours Standard labor rate:…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.