Delta Corporation manufactures two products, Flow and Glow. They use a standard cost system based on...

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Delta Corporation manufactures two products, Flow and Glow. They use a standard cost system based on direct labor hours. Assume that the quantity of units purchased for materials is equal to the quantity of units used for production. Selected data follows: Standards: Flow Direct materials per unit............. 3 lbs. @ $1.00 per lb. Direct labor per unit.................... 5 hrs. @ $8.00 per hr. Budgeted: Glow 4 lbs. @ $1.10 per lb. 6 hrs. @ $8.50 per hr. $27,300 7,800 Variable overhead....... Direct labor hours $18,400 5,750 Actual: Units produced 1,000 1,200 Direct materials used......... 3,100 4,700 Direct materials cost. $2,790 $5,405 Direct labor hours used....... 4,900 7,400 Direct labor cost...... $38,955 $63,270 Variable overhead. $16,170 $25,220 Calculate the direct materials, direct labor, and variable overhead variances, including the totals for each. Delta Corporation manufactures two products, Flow and Glow. They use a standard cost system based on direct labor hours. Assume that the quantity of units purchased for materials is equal to the quantity of units used for production. Selected data follows: Standards: Flow Direct materials per unit............. 3 lbs. @ $1.00 per lb. Direct labor per unit.................... 5 hrs. @ $8.00 per hr. Budgeted: Glow 4 lbs. @ $1.10 per lb. 6 hrs. @ $8.50 per hr. $27,300 7,800 Variable overhead....... Direct labor hours $18,400 5,750 Actual: Units produced 1,000 1,200 Direct materials used......... 3,100 4,700 Direct materials cost. $2,790 $5,405 Direct labor hours used....... 4,900 7,400 Direct labor cost...... $38,955 $63,270 Variable overhead. $16,170 $25,220 Calculate the direct materials, direct labor, and variable overhead variances, including the totals for each.

Answer rating: 100% (QA)

To calculate the direct materials direct labor and variable overhead variances we will use the following formulas 1 Direct Materials Variance Direct M... View the full answer