Kaufmann Manufacturing Company (A)
Answer#1 First Six-Months Price Variance Efficiency Variance Sales-Volumn Variance AQ*AP AQ*SP SQ*SP Static Q*SP Raw Materials 590000*3.867=2281000 79000F 590000*4=2360000 104000U 188000*3*4=2256000 144000F 200000*3*4=2400000 Direct Labor 400000*11=4400000 $- 400000*11=4400000 264000U 188000*2*11=4136000 264000F 200000*2*11=4400000 Spending Variance Efficiency Variance Never a Variance Actual Input Quantity*AR Actual Input Quantity*SR Flexible:Budgeted Input Quantity Allowed for Actual Output*SR Allocated:Budgeted Input Quantity Allowed for Actual Output*SR Indirect Labor 400000*2.7=1080000 $- 400000*2.7=1080000 64800U 188000*2*2.7=1015200 $- 188000*2*2.7=1015200 Supplies 400000*0.175=70000 $- 400000*0.175=70000 4200U 188000*2*0.175=65800 $- 188000*2*0.175=65800 Power 400000*3=1200000 $- 400000*3=1200000 72000U 188000*2*3=1128000 $- 188000*2*3=1128000 Spending Variance Never a Variance Volumn Variance Actual Costs Incurred Static Budget Costs Flexible:Static Budget Costs Allocated:Budgeted Input Quantity Allowed for Actual Output*SR Maintenance $2,172,000 122000U $2,050,000 $- $2,050,000 123000U 188000*10.25=1927000 Supervision $1,800,000 130000F $1,930,000 $- $1,930,000 115800U 188000*9.65=1814200 Depreciation $1,460,000 $- $1,460,000 $- $1,460,000 87600U 188000*7.3=1372400 Insurance $353,000 3000U $350,000 $- $350,000 21000U 188000*1.75=329000 Second Six-Months Price Variance Efficiency Variance Sales-Volumn Variance AQ*AP AQ*SP SQ*SP Static Q*SP Raw Materials 600000*4.05=2432000 32000U 600000*4=2400000 144000F 212000*12=2544000 144000U 200000*3*4=2400000 Direct Labor 425000*11.325=4813000 138000U 425000*11=4675000