Problem

Calculating Direct Material, Direct Labor, Variable Manufacturing OverheadCandleGlow, Inc....

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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