A summary of Flaker Company’s manufacturing variance report for June 2019 follows. Total Standard Costs (7,600...

A summary of Flaker Company’s manufacturing variance report for June 2019 follows.

	Total Standard Costs (7,600 units)	Actual Costs (7,600 units)	Variances
Direct material	$66,880	$66,150	$730	F
Direct labor	77,520	81,420	3,900	U
Variable overhead	33,060	33,000	60	F
Fixed overhead	102,600	102,600	-
	$280,060	$283,170	$3,110	U

Standard materials cost per unit of product is 4 pounds at $2.20 per pound, and standard direct labor cost is 0.75 hour at $13.60 per hour. Total actual materials cost represents 31,500 pounds purchased at $2.10 per pound. Total actual labor cost represents 5,900 hours at $13.80 per hour. According to standards, variable overhead rate is applied at $5.80 per direct labor hour (based on a normal capacity of 6,000 direct labor hours or 8,000 units of product). Assume that all fixed overhead is applied to work-in-progress inventory.

a. Determine the following variances: material, labor, and vairiable overhead

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

Expert Solution

a. Required variances are calculated as follows:

Results of the excel sheet are as follows:

ekkarill92 answered 2 years ago

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