Question

Water Polo LLC which produces swin wear, has provided the following actual and standard cost data:
		Standard	Actual
Direct Material pounds		124,000	126,000
Direct Material cost per pound		$3.00	2.75
Direct Labor Cost		$744,000	$746,200
Direct Labor - No. of hours worked		93,000	91,000
Overhead Applied		$372,000	$360,000
Instructions
Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable (F) or unfavorable(U)
(a) Total Material Variance
(b) Total Labor Variance
(c) Total Overhead Variance
(a) Total Material Variance
Answer:
		Actual	Standard	Variance
Materials pounds
Materials cost pounds
Total Materials
(b) Total Labor Variance
Answer:
		Actual	Standard	Variance
Direct Labor hours worked
Direct labor hours rate
Total Direct Labor
(c) Total Overhead Variance
Answer:
		Actual	Standard	Variance
Overhead

Answer 1

Answer is given below

Total Material variance Actual Standard Variance Material pounds Material cost pounds Total Material Cost 126,000 124,000 $3.00 $372,000 $2.75 -$25,500 Unfavourable $346,500 Total Labor variance Actual Standard Variance Direct Labor hours worked Direct Labor hour rate Total Direct Labor 91,000 $8.20 $746,200 93,000 $8.00 $744,000 $2,200 Favourable Total Overhead Variance Variance Actual Standard $360,000 Overhead applied $372,000 -$12,000 Unfavourable