### Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

# Peyton Approved Budget Variance Report For the Year Ended . Actual Results Direct materials variances Cost/price variance Efficiency variance

Im having a hard time with my budget variance sheet. Here is what I have so far and here are the details that my professor gave us as well as the budget worksheet that I got a 100% on last week.

Teachers details:

When you complete the Budget Variance Worksheet, you need to complete the Labor and Material Variance worksheet first.  Before you try to calculate the variance amounts you need to determine the variables that you will need for the calculations.

For the labor variances these are:

1. Actual Cost – This is the actual cost per unit for labor during the quarter.  This amount is given in the problem information.  Specifically you need to look at critical element 2 and you will find the information in the first sentence (hint is is \$15).
2. Actual Quantitiy – This is the actual amount of labor used during the quarter.  This amount is also given in the problem information with the actual cost.
3. Standard Cost – This is the standard cost allowed for the quarter.  It is the budgeted amount.  Specifically you can find it as the cost per hour for labor on the Direct Labor budget (on your student worksheet).
4. Standard Quantity – This is the standard amount of labor (in hours) that were budgeted for the quarter.  Specifically you can find it as the total labor hours on the Direct Labor budget (hint it is 30,000)

For the material variances these are:

1. Actual Cost – This is the actual cost per unit for materials during the quarter.  This amount is given in the problem information.  Specifically you need to look at critical element 2 and you will find the information in the first sentence (hint is is \$7.75).
2. Actual Quantitiy – This is the actual amount of material used during the quarter.  This amount is also given in the problem information with the actual cost.
3. Standard Cost – This is the standard cost allowed for the quarter.  It is the budgeted amount.  Specifically you can find it as the cost per unit for materials on the Raw Materials budget (on your student worksheet).  In addition, do not let it confuse you when you find that this amount is the same as the actual cost (hint! hint!)
4. Standard Quantity – This is the standard amount of materials (in units) that were budgeted for the quarter.  Specifically you can find it as the total labor amount of Raw Materials on the Raw Materials  budget (hint it is 60,000)

ATTACHMENT PREVIEW

Peyton ApprovedBudget Variance ReportFor the Year Ended …VarianceDirect materials variancesCost/price varianceEfficiency varianceTotal direct materials varianceDirect labor variancesCost /price varianceEfficiency varianceTotal direct labor varianceActualResultsStaticBudgetFavorable/Unfavorable

Labor varianceactual cost\$15.0033,000\$16.0030,000495,000528,000480,00033,000(48,000)FavorableUnfavorableTotal Variance(15000)UnfavorableMaterials varianceactual cost\$7.7531,000\$7.7527,380-224,750FavorableactualquantitystandardcoststandardquantityThis is a favorable variance, because\$1.00 less was spent for actual costdespite spending more on over alltotal priceThis is an unfavorable variance,because while there was lessquantity used \$1.00 more onactual cost despite not having touse as many hours.Laborcost/priceVarianceLaborefficiencyVarianceactualquantitystandardcoststandardquantity

##### Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient" 