Variance analysis the north point plant of englehart electronics – Essaylink

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Variance analysis The North Point plant of Englehart Electronics Company has the following standards for component C93:




2 units of material B

Material price

$10 per unit of B

Direct labor

1 hour

Wage rate

$10 per direct labor hour

Variable support cost rate

$25 per direct labor hour

Actual results for May:


Used 4,200 units of B, purchased at $9.75 per unit of B


Paid for 2,000 direct labor hours at $11 per hour


Incurred $48,000 of variable support costs


Manufactured 2,000 units of component C93



Determine the following variances for May:

(a) Total direct material cost variance

(b) Total direct labor cost variance

(c) Total variable support cost variance

(d) Direct material price variance

(e) Direct material quantity variance

(f) Direct labor rate variance

(g) Direct labor efficiency variance

(h) Variable support rate variance

(i) Variable support efficiency variance.

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