Bullseye Company manufactures dartboards.

Its standard cost information follows:

	Standard Quantity	Standard Price (Rate)	Standard Unit Cost
Direct materials (corkboard)	200 sq ft	$2.10 per sq ft	$420
Direct labor	1hr	$10.00 per hr	10.00
Variable manufacturing overhead	1 hr	$0.40 per hr	0.40
(based on direct labor hours)
Fixed manufacturing overhead			0.30
(60,000 / 200,000 units)

Bullseye has the following actual results for the month of September:

Number of units produced and sold	180,000
Number of square feet of corkboard used	370,000
Cost of corkboard used	$814,000
Number of labor hours worked	188,000
Direct labor cost	1,710,800
Variable overhead cost	73,000
Fixed overhead cost	51,000

Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.

1. Calculate the direct materials price, quantity and total spending variances for Bullseye.

2. Calculate the direct labor rate, efficiency and total spending variances for Bullseye.

3. Calculate the variable overhead rate, efficiency and total spending variances for Bullseye.

Indicate the effect of each variance by selecting "F" for favorable - over applied and "U" for unfavorable - under applied.

Answer rating: 100% (QA)

1Direct material price variance actual price standard priceAQ purchased ... View the full answer