In: Accounting
Direct materials | 196,000 lbs. at $4.90 | 194,000 lbs. at $4.70 | |
Direct labor | 17,500 hrs. at $16.30 | 17,900 hrs. at $16.60 | |
Factory overhead | Rates per direct labor hr., | ||
based on 100% of normal | |||
capacity of 18,260 direct | |||
labor hrs.: | |||
Variable cost, $3.20 | $55,440 variable cost | ||
Fixed cost, $5.10 | $93,126 fixed cost |
Each unit requires 0.25 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Materials Price Variance | $fill in the blank 1 | |
Direct Materials Quantity Variance | $fill in the blank 3 | |
Total Direct Materials Cost Variance | $fill in the blank 5 |
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Labor Rate Variance | $fill in the blank 7 | |
Direct Labor Time Variance | $fill in the blank 9 | |
Total Direct Labor Cost Variance | $fill in the blank 11 |
c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Variable factory overhead controllable variance | $fill in the blank 13 | |
Fixed factory overhead volume variance | $fill in the blank 15 | |
Total factory overhead cost variance | $fill in the blank 17 |