Question

songsu Co. is struggling to control costs. we are hired as consultants to determine why the company's actual costs exceed budgeted costs. The tableau dashboard is provided for our analysis.

Tableau DA 8-3: Mini-Case, Direct labor variances and overhead variances LO P2, P3 Songsu Co. is struggling to control costs. We are hired as consultants to determine why the company's actual costs exceed budgeted costs. The Tableau Dashboard is provided for our analysis. Direct Materials Direct Labor Standard Actual Standard Actual 8 $7 $17 $6 6 lbs 15 $14 ces 4 lbs 10 2.5 hrs 2 hrs data visualization Pounds Per Unit Pounds Per Price Per Price Per Hours Per Price Per Hour Hours Per Price Per Pound Unit Pound Unit Unit Hour Overhead Standard Costs Overhead Actual Costs $20 $15 < Prev 1 of 1 Next Hour

OVERHEAD- ACTUAL COSTS

variable overhead: 101,000

fixed overhead: 68,000

OVERHEAD- STANDART COSTS

variable overhead- $12 per hour , 2 hours per unit.

fixed overhead - 6 per hour , 2 hours per unit.

ACTUAL UNITS MANUFATURED: 5,100 units

Answer 1

1&2.

Actual cost								Standard cost
AH	$\times$	AR		AH	$\times$	SR		SH	$\times$	SR
12,750 (5,100*2.5)		$14		12,750		$17		10,200 (5,100*2)		$17
			$38,250 Favorable				$43,350 Unfavorable
Direct labor rate variance	$38,250	Favorable
Direct labor efficiency variance	43,350	Unfavorable
Total direct labor cost variance	5,100	Unfavorable

3&4.

	Predetermined overhead rate	Standard DL hours	Overhead cost applied	Actual results	Variance	Fav./Unf.
Variable overhead cost	$12	10200 (5100*2)	$122,400	$101,000	$21,400	Favorable
Fixed overhead cost	6	10200 (5100*2)	61,200	68,000	6,800	Unfavorable
Total overhead cost	$18		$183,600	$169,000	$14,600	Favorable