Part A: Refer to the information in Need-to-Know 21-6 to answer the requirements.

Data from Need-to-Know 21-6

Pacific Company provides the following information about its standard costs per unit along with its budgeted and actual results for June. Although the budgeted June volume was 25,000 units produced and sold, the company actually produced and sold 27,000 units.

Required
1. Compute the variable overhead spending variance and the variable overhead efficiency variance.
2. Compute the fixed overhead spending variance and the fixed overhead volume variance.

Part B: Prepare journal entries to record direct materials, direct labor, and overhead variances under standard costing.

Transcribed Image Text:

Direct Materials Actual cost......... Standard cost.. Quantity variance.... Price variance....... $73,200 75,700 3,800 F 1,300 U Direct Labor Actual cost........... Standard cost. Efficiency variance Rate variance........ ...... $38,000 40,000 1,000 U 3,000 F Overhead Actual cost.... Standard cost. Volume variance.. Controllable variance.... $60,000 64,000 1,500 F 2,500 F