Compute the following cost variances from the available data.
Problem 11-49 Complete Analysis of Cost Variances; Review of Chapters 10 and 11 (LO 11-5)
Chillco Corporation produces containers of frozen food. During April, Chillco produced 785 cases of food and incurred the following actual costs.
| Variable overhead | $ | 6,900 | |
| Fixed overhead | 10,500 | ||
| Actual labor cost (4,000 direct-labor hours) | 74,400 | ||
| Actual material cost (24,500 pounds purchased and used) | 51,450 | ||
Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows:
| Standard Costs per Case | |||
| Direct labor (4 hours at $18 per hour) | $ | 72.00 | |
| Direct material (30 pounds at $1.80 per pound) | 54.00 | ||
| Variable overhead (4 direct-labor hours at $2.10 per hour) | 8.40 | ||
| Fixed overhead (4 direct-labor hours at $3 per hour) | 12.00 | ||
| Total | $ | 146.40 | |
| Annual Budget Information | |||
| Variable overhead | $ | 84,000 | |
| Fixed overhead | $ | 120,000 | |
| Planned activity for year | 40,000 | direct-labor hours | |
Required:
Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations.)
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Based on the following information below:
1. Calculate the direct materials price and quantity variance.
Please note that the materials price variance is based on actual
material purchased and the quantity variance is based on material
used.
2. Calculate the direct labor rate and efficiency variances.
3. Calculate the variable overhead spending and efficiency
variances.
4. Calculate the fixed overhead budget variance.
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Use the information above to compute direct labor and direct materials variances. Variable produc...
Use the information above to
compute direct labor and direct materials variances. Variable
product costs are broken down into DM, DL, and VMOH.
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Based on the following information below:
1. Calculate the direct materials price and quantity variance.
Please note that the materials price variance is based on actual
material purchased and the quantity variance is based on material
used.
2. Calculate the direct labor rate and efficiency variances.
3. Calculate the variable overhead spending and efficiency
variances.
4. Calculate the fixed overhead budget variance.
Gourmet, Inc. prDduces containers of frozen food Duing October the company had the following actual production and costs...
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Use the information above to
compute direct labor and direct materials variances. Variable
product costs are broken down into DM, DL, and VMOH.
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