Question

Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to theActual 10,250 $1,937,800 Budget 9,950 $1,860,700 Variance 300 Favorable $77,100 Favorable Cases produced and sold Sales revenLexi picked up the phone and called Irvin. Irvin, I dont get it. We beat the budgeted operating income for the month, but lIrvin also found the standard cost card for a case of product. Direct materials Direct labor Variable overhead Fixed overhead(a-b) Calculate the direct material price variance and direct material quantity variance for the month. (If variance is zero,(e-f) Calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (If variancePrice/Rate/Spending Variance Quantity/Efficiency Variance Direct materials Direct labor Variable overhead Fixed overhead TotaBased on your review of the performance report you prepared, do you think Lexi did a good job of controlling production expen

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Direct Material cost varaince AC-(AQ*SC) 558195-(101490*5.5) 0 None
Direct materiall efficiency variance SR*(AQ used-SQ) 5.5*(101490-(10250*10)) 5555 F
Direct Labor cost varaince AC-(AH*SC) 266312-(26368*10) 2632 U
Direct Labor efficiency variance SR*(AH-SH) 10*(26368-(10250*2.59)) 1795 F
VOH cost varaince AC-(AH*SC) 283587-(40745*7) 1628 F
VOH efficiency variance SR*(AH-SH) 7*(40745-(10250*4)) 1785 F
Fixed overhead spending variance AC-FOH (budgeted) 110445-109450 995 U
Fixed Overhead volume Variance Budgeted overhead-Applied Overhead 109450-(10250*4*2.74) 2890 F
(I have done this extra)
Price/Rate/Spending var Qty/efficiency variance
Direct Material 0 None 5555 F
Direct Labor 2632 U 1795 F
Variable overhead 1628 F 1785 F
Fixed overhead 995 U 2890 F
Total 1999 U 12025 F
\Yes, it controlled cost
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