Acc202 Survey of Accounting: E15-2 Determining amount and type (favorable vs. unfavorable)

Acc202 Survey of Accounting
E15-2 Determining amount and type (favorable vs. unfavorable) of variance

Required
Compute variances for the following items and indicate whether each variance is favorable (F) or unfavorable (U).
Budget Actual
Sales price 650 525
Sales revenue 580,000 600,000
Cost of goods sold 385,000 360,000
Material purchases at 5,000 pounds 275,000 280,000
Materials usage 180,000 178,000
Production volume 950 900
Wages at 4,000 hours 60,000 58,700
Labor usage at $16 per hour 96,000 97,000
Research and development expense 22,000 25,000
Selling and administrative expenses 49,000 40,000
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