Required Compute variances for the following items and indicate whether each variance is favorable or unfavorable: Note: Select "None" if there is no effect (i.e., zero variance). Item Sales price Sales revenue Budget Actual Variance $ 652 $ 526 $ 581,000 $ 602,000 Cost of goods sold $ 386,500 $ 361,000 Material purchases at 5,000 pounds $ 276,000 $ 281,500 Materials usage 181,500 pounds 179,000 pounds pounds Production volume 960 units 905 units units Wages at 4,000 hours $ 60,200 $ 58,800 Labor usage at $16 per hour $ 96,100 $ 97,200 Research and development expense $ 23,000 $ 26,500 Selling and administrative expenses $ 50,500 $ 41,000 Effect
Required Compute variances for the following items and indicate whether each variance is favorable or unfavorable: Note: Select "None" if there is no effect (i.e., zero variance). Item Sales price Sales revenue Budget Actual Variance $ 652 $ 526 $ 581,000 $ 602,000 Cost of goods sold $ 386,500 $ 361,000 Material purchases at 5,000 pounds $ 276,000 $ 281,500 Materials usage 181,500 pounds 179,000 pounds pounds Production volume 960 units 905 units units Wages at 4,000 hours $ 60,200 $ 58,800 Labor usage at $16 per hour $ 96,100 $ 97,200 Research and development expense $ 23,000 $ 26,500 Selling and administrative expenses $ 50,500 $ 41,000 Effect
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter23: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 23E: Dickinsen Company gathered the following data for December: a.Compute the revenue price variance....
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