Question

Blumen Textiles Corporation began April with a budget for 34,000 hours of production in the Weaving Department. The department has a full capacity of 45,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows:

Variable overhead	$125,800
Fixed overhead	85,500
Total	$211,300

The actual factory overhead was $213,800 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 35,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.

a. Variable factory overhead controllable variance: $  Favorable

b. Fixed factory overhead volume variance: $ Unfavorable

Direct Materials and Direct Labor Variances

At the beginning of June, Bezco Toy Company budgeted 17,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:

Direct materials	$21,250
Direct labor	6,800
Total	$28,050

The standard materials price is $0.5 per pound. The standard direct labor rate is $10 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:

Actual direct materials	$19,100
Actual direct labor	6,100
Total	$25,200

There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 14,800 units during June.

Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials quantity variance	$	Unfavorable
Direct labor time variance	$	Unfavorable

Answer 1

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