Carson Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the tests have been developed by the company's controller, Landon Carson, based on performing 2,100 core tests per month.

At the end of March, London reported the following operational results:

• The company actually performed 2,250 core tests during the month.

• 8,500 pounds of direct materials were purchased during the month at a total cost of $5,600.

• 6,300 pounds of direct materials were used to conduct the core tests.

• 850 direct labor hours were worked at a total cost of $9,775.

• Actual variable overhead was $7,800.

• Actual fixed overhead was $15,750.

Required
a. Calculate the direct materials price variance for March.
b. Calculate the direct materials quantity variance for March.
c. Calculate the direct labor rate variance for March.
d. Calculate the direct labor efficiency variance for March.
e. Calculate the variable overhead spending variance for March.
f. Calculate the variable overhead efficiency variance for March.
g. Calculate the fixed overhead spending variance for March.
h. Prepare a memo to Landon Carson providing possible explanations for the direct materials and direct labor variances.

Transcribed Image Text:

Standard Price 50.50 per pound $10 per DLH $9 per DLH $16 per DLH Standard Standard Cost Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per test 4 pounds 5 DLH 5 DLH 5 DLH $ 2.00 5.00 4.50 8.00 $19.50