What is the sales margin variance? a.(3,075,000) b.3,480,000 c.(3,480,000) d.3,075,000 5.What is the price variance? a.(675,000) b.3,750,000 c.(405,000) d.3,075,000 6.What is the quantity variance? a.(405,000) b.3,075,000 c.3,480,000 d.405,000
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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.
4.Statin company expected to sell 3000 masks for $200 each but ended up selling 7500 for $150 each.
Their contribution margins are listed below
Actual Margin = $500
Standard Margin = $90
What is the sales margin variance?
a.(3,075,000)
b.3,480,000
c.(3,480,000)
d.3,075,000
5.What is the price variance?
a.(675,000)
b.3,750,000
c.(405,000)
d.3,075,000
6.What is the quantity variance?
a.(405,000)
b.3,075,000
c.3,480,000
d.405,000
Step by step
Solved in 2 steps
- ACE CORP HAS THE FOLLOWING DL STANDARDS: DLHRS/UNIT 1.25 DL COST/HR $32 ACE USED 21,780 DLHRS TO PRODUCE 18,000 UNITS. ACTUAL DL COSTS = $713,295. WHAT IS THE AMOUNT OF THE DL PRICE VARIANCE? ___________ IS THE VARIANCE FAVORABLE OR UNFAVORABLE? ___________ REFER TO QUESTION 1. WHAT IS THE AMOUNT OF THE DL EFFICIENCY VARIANCE? _________ IS THE VARIANCE FAVORABLE OR UNFAVORABLE__________6. A company budgets to sell 600 units of product F at a sales price of N30. The standard füll cost of production is N20 for variable costs and N8 for fixed cost, i.e. N28 in total, so that the standard profit is 2 per unit of product F. If actual sales are 620 units for N20,460. You are required to determine the: (a) Sales price variance, and (b) Sales volume variance. 7. Kanako Ltd, manufactures one product, and the entire product is sold as soon as it is produced. There are no opening or elosing inventories and work-in- progress is negligible. The company operates a standard costing system and analysis of variance is made very month. The standard cost card for the product "ZOOM" is as follows: 0.5 kilos @ N4.00 per kilo 2hours @ N2.00 per hour 2 hours @ NO.30 per hour 2 hours @ N3.70 per hour Direct materials N2.00 Direct wages Variable overheads N4.00 N0.60 N7.40 N14.00 Fixed overheads Standard cost Standard profit Standard selling price N6.00 N20.00 Selling and administrative…24. Which of the following is a possible reason for a sales volume variance? A. Direct material prices per unit were different than expected B. The quantity of labor hours used per unit were different than expected C. The actual number of units sold were different than expected D. Both A & B 25. You have won the lottery and you have been given the following options. Which one should you choose if the current interest rate is 5% annually? A. $3,000,000 today B. $290,000 per year at the end of each of the next 15 years C. $6,000,000 at the end of 15 years. D. $350,000 per year at the end of each of the next 10 years 26. You have received a settlement from an insurance company which will pay you $100,000 per year for 12 years at the end of each year and J.G. Wentworth wants to buy your annuity. What is JG Wentworth's annual rate of return (interest rate) if they are willing to pay you $500,000 today? A. 7.56% B. 18.21% C. 16.94% D. Interest rate cannot be calculated. 27. The Merrymount…
- The actual margin per unit and margin per unit estimated in the plan are $6 and $8, respectively. The actual volume and the volume estimated in the plan are 5,000 units and 10,000 units, respectively. What is the margin variance of the business? O-$10,000 $5,000 -$20,000 $10,000 O$20,000What is the DM Price Variance, given the following info: Actual Costs = 4,600 lbs. at $5.50 Standard Costs = 4,500 lbs. at $6.00 Group of answer choices $1,700.00 unfavorable $2,250.00 favorable $2,300.00 favorable $2,250.00 unfavorableThe income data of SB Kopi for the years 200B and 200A are as follows: 200B 200A Variance Sales 276,000.00 204,000.00 72,000.00 F Cost of Sales 151,800.00 122,400.00 29,400.00 U Gross Profit 124,200.00 81,600.00 42,600.00 Question: the 200B cost price is higher (lower) than the 200A cost price by: (12.745%) (10%) 10% 12.745%
- The income data of SB Kopi for the years 200B and 200A are as follows: 200B 200A Variance Sales 276,000.00 204,000.00 72,000.00 F Cost of Sales 151,800.00 122,400.00 29,400.00 U Gross Profit 124,200.00 81,600.00 42,600.00 Question: If the sales price in 200B is approximately 20% higher that the sales price in 200A, the P72,000 increase in sales may be analyzed into: Sales Price Variance Sales Volume Variance a 46,000 favorable 26,000 unfavorable b 46,000 unfavorable 26,000 favorable c 26,000 favorable 46,000 favorable d 46,000 favorable 26,000 favorable Group of answer choices B A C D Question: The 29,400 increase in cost of sales may be analyzed into: Cost Volume Variance Cost Price Variance a 15,000 favorable…7. How much is the sales price- volume variance? * Gross Profit Last Year Gross Profit This Year P 861,250 900,000 Change in units sold last year Units Sold 650 50 Change in sales price Change in cost price P 100 75 Excerpt from the four-way analysis: Sales Quantity Variance - Unfavorable P 245,000 Cost Price Variance- Favorable Cost Quantity Variance - Favorable 45,000 178,750A producer of pens has received a forecast of 25,000. Fixed Cost = $30,000 and Total Variable Cost = $50,000 at this level. What is the total variable cost if volume is 40,000. a. P80 b. P78 c. P75 d. P70
- Dairy Delites had the following projected and incurred the following production and cost data shown below: Actual Variable MOH Incurred $2,328 Actual Quantity of the Cost Driver (AQ) 850 hours Standard Quantity of the Cost Driver (SQ) 780 hours Standard Price per usage of cost driver (SP) $2.30/hr. What is the Variable-MOH Efficiency Variance? A) $161 unfavorable B) $161 favorable C) $373 unfavorable D) $373 favorableDairy Delites had the following projected and incurred the following production and cost data shown below: Actual Variable MOH Incurred $2,328 Actual Quantity of the Cost Driver (AQ) 850 hours Standard Quantity of the Cost Driver (SQ) 780 hours Standard Price per usage of cost driver (SP) $2.30/hr. What is the Variable-MOH Price Variance? A) $161 unfavorable B) $161 favorable C) $373 unfavorable D) $373 favorableA company has the following standard cost card for a product: £ Selling price 2.50 Variable costs 1.95 Fixed cost 0.15 The original budget was to make and sell 110,000, but in fact 125,000 were produced and 120,000 sold for total revenue of £295,000. Which of the following are the correct variances? Sales volume Sales price A 4,000 F 5,000 A B 4,000 F 5,000 F C 25,000 F 20,000 A D 25,000 F 20,000 F