Calculating Direct Material, Direct Labor, Variable Manufacturing Overhead
CandleGlow, Inc., manufactures scented pillar candles. Its standard cost information for the month of February follows:
| Standard Quantity | Standard Price (Rate) | Standard Unit Cost |
Direct costs |
|
|
|
Wax | 15 oz. | $ 0.05 per oz. | $0.75 |
Direct labor | 0.25 hr. | 14.00 per hr. | 3.50 |
Variable manufacturing overhead |
| 0.40 per direct labor hour | 0.10 |
Fixed manufacturing overhead ($10,000/40,000 units) |
|
| 0.25 |
CandleGlow has the following actual results for the month of February:
Number of units produced and sold | 35,000 |
Number of ounces of wax purchased and used | 530,000 |
Cost of wax used | $ 31,800 |
Number of labor hours worked | 9,000 |
Direct labor cost | $123,750 |
Variable overhead cost | $ 3,300 |
Fixed overhead cost | $ 9,700 |
Required:
Calculate the following for CandleGlow:
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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