Solve
Direct materials (3 pounds @ $5.00 per pound) Direct labor (7 hours @ $34 per hour) variable overhead (7 hours @ $7 per hour) Fixed overhead (7 hours @ $9 per hour) Standard cost per unit
$150.09 93.69 43.00 63.60 $363.68
Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 61,000 units per quarter. The following additional information is available.
Operating Levels 78A 03.6 42.76B 48.00 298,900 341,609
Production (in units) standard direct labor hours 7 DLH/unit Budgeted overhead (flexible budget) Fixed overhead variable overhead
986 54,988
$3,074,403 2,92,38
$3,074,480 $2,391,200
$3,074,483 $2,0,200
During the current quarter, the company operated at 90% of capacity and produced 54,900 units; actual direct labor totaled 316,300 hours. Units produced were assigned the following standard costs.
Direct materials (1,647,000 pounds @ $5.00 per pound) Direct labor (338,800 hours @ $34 per hour) Overhead (364,366 hours @ $16 per hour) Standard (budgeted) cost
$5,235,008 5,33,0 6,243,899 $29,764,08
Actual costs incurred during the current quarter follow
Direct materials 1354 pounds $7.00 per pound
$0,69,209 3,518,93 2,348,409 2;742 289 $33,243,738
Fixed overhead variable overhead Actual cost
Required: 1. Compute the direct materials variance, including its price and quantity variances. Compute the direct labor variance, including its rate and efficiency variances. 3. Compute the overhead controllable and volume variances.
Complete this question by entering your answers in the tabs below.
Req1 Req1 Controllable Volume Variance Variance
Req 2
