VariancePart AThe following standard costs per unit have been established byJohn, Inc.:Material...VariancePart AThe following...

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Accounting

Variance
Part A
The following standard costs per unit have been established byJohn, Inc.:
Material (3 kilograms at $2 per kilogram) $6.00
Direct labor (2 hours at $12 per hour) $ 24.00
During the month, John produced 1,100 units, which was 100 moreunits than planned.
They used 3,400 kilograms and 2,050 hours to do so.
Total actual materials spending was $6,460, while total actuallabor spending was $27,675.
Required
Choose EITHER materials OR labor, and compute the followingvariances:
Spending
Efficiency
Activity
Be sure to denote which you chose (materials or labor) and labeleach variance as favorable or unfavorable.
Part B
Meghan Company sells two products – Deluxe and Ultra.
The following information was gathered about the twoproducts:
Deluxe Ultra
Budgeted sales in units 3,200 800
Budgeted selling price (unit) $300 $850
Actual sales in units 3,500 1,500
Actual selling price (unit) $325 $840
Required
Calculate the three main revenue variances for the Meghanproduct.
Be sure to label the variances by name, as well as “favorable”or “unfavorable.”
If there is insufficient information to calculate any of thevariances, please denote that clearly.

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In: AccountingVariancePart AThe following standard costs per unit have been established byJohn, Inc.:Material...VariancePart AThe following standard costs per unit have been established byJohn, Inc.:Material (3 kilograms at $2 per kilogram) $6.00Direct labor (2 hours at $12 per hour) $ 24.00During the month, John produced 1,100 units, which was 100 moreunits than planned.They used 3,400 kilograms and 2,050 hours to do so.Total actual materials spending was $6,460, while total actuallabor spending was $27,675.RequiredChoose EITHER materials OR labor, and compute the followingvariances:SpendingEfficiencyActivityBe sure to denote which you chose (materials or labor) and labeleach variance as favorable or unfavorable.Part BMeghan Company sells two products – Deluxe and Ultra.The following information was gathered about the twoproducts:DeluxeUltraBudgeted sales in units3,200800Budgeted selling price (unit)$300$850Actual sales in units3,5001,500Actual selling price (unit)$325$840RequiredCalculate the three main revenue variances for the Meghanproduct.Be sure to label the variances by name, as well as “favorable”or “unfavorable.”If there is insufficient information to calculate any of thevariances, please denote that clearly.

	Deluxe	Ultra
Budgeted sales in units	3,200	800
Budgeted selling price (unit)	$300	$850
Actual sales in units	3,500	1,500
Actual selling price (unit)	$325	$840