Problem

Calculating Direct Materials, Direct Labor, Variable Manufacturing OverheadDarting Around...

Calculating Direct Materials, Direct Labor, Variable Manufacturing Overhead

Darting Around Company manufactures dartboards. Its standard cost information follows:

 

Standard

Quantity

Standard Price

(Rate)

Standard Unit

Cost

Direct costs

 

 

 

Cork board

2.5 sq. ft.

$ 2.00 per sq. ft.

$ 5.00

Direct labor

1 hr.

14.00 per hr.

14.00

Variable manufacturing overhead

 

.50 per direct labor hour

0.50

Fixed manufacturing overhead

($20,000/80,000 units)

 

 

0.25

Darting Around has the following actual results for the month of September:

Number of units produced and sold

70,000

Number of square feet of corkboard used

180,000

Cost of corkboard used

$378,000

Number of labor hours worked

75,000

Direct labor cost

$975,000

Variable overhead cost

$ 36,000

Fixed overhead cost

$ 25,000

Required:

Calculate the following for Darting Around:

1.Direct materials price, quantity, and total spending variances.


2. Direct labor rate, efficiency, and total spending variances.


3. Variable overhead rate, efficiency, and total spending variances.

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