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Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget...

Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are for March:

Standards Mountain Mist Valley Stream
Direct materials 3 ounces at $14.90 per ounce 4 ounces at $16.60 per ounce
Direct labor 5 hours at $60.10 per hour 6 hours at $76 per hour
Variable overhead (per direct labor-hour) $48 $52.60
Fixed overhead (per month) $342,225 $398,580
Expected activity (direct labor-hours) 5,850 7,800
Actual results
Direct material (purchased and used) 3,200 ounces at $13.60 per ounce 4,800 ounces at $17.50 per ounce
Direct labor 4,910 hours at $61.00 per hour 7,410 hours at $77.50 per hour
Variable overhead $245,550 $379,510
Fixed overhead $314,950 $397,000
Units produced (actual) 1,010 units 1,210 units


Required:

a. Compute a variance analysis for each variable cost for each product. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

MOUNTIAN MIST VALLEY STREAM
PRICE VARIANCE EFFECIENCY VARIANCE PRICE VARIANCE EFFECIENCY VARIANCE
DRECT MATERIALS
DIRECT LABOR
VARIABLE OVERHEAD

b. Compute a fixed overhead variance analysis for each product. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

MONTIAN MIST VALLEY STREAM
PRICE VARIANCE PRODUCTION VOLUME VARIANCE PRICE VARIANCE PRODUCTION VOLUME VARIANCE
FIXED OVERHEAD

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