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Question
| Direct materials (5 lbs. @ $4/lb.) | $20.00 |
| Direct labor (2 hrs. @ $8.75/hr.) | 50 |
| Variable overhead (2 hrs. @ $3/hr.) | 6.00 |
| Fixed overhead (2 hrs. @ $7/hr.) | 14.00 |
| Total cost per unit | $57.50 |
The actual production achieved in the current year was 60% of capacity, or 30,000 units. The actual costs were:
| Direct materials (150,350 lbs.) | $616,435 |
| Direct labor (59,800 hrs.) | 520,260 |
| Variable overhead | 192,000 |
| Fixed overhead | 552,000 |
Calculate the following variances and indicate whether each is favorable or unfavorable:
| Direct materials: |
| Price variance _________________________ |
| Quantity variance _________________________ |
| Direct labor: |
| Rate variance _________________________ |
| Efficiency variance _________________________ |
| Variable overhead: |
| Spending variance _________________________ |
| Efficiency variance _________________________ |
| Fixed overhead |
| Spending variance _________________________ |
| Volume variance _________________________ |
Answer
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Related questions
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Periods
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Q:
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Q:
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C. Results from past outcomes only.
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E. Speculation of interest rates and economic performance only.
Q:
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