The SCC Division of the Big-Drug Company uses standard costing to help control their production costs....

 
 

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The SCC Division of the Big-Drug Company uses standard costing to help control their production costs. The division's main product is a pharmaceutical product that comes in a multi-dose package. The standard variable costs per package are given below: Direct Materials chemicals 1.5 ounces @ Direct materials packages Direct Labor 2 packages @ of an hour @ Variable Overhead 0.25 $2.25 per direct labor hour per direct labor hour Fixed Overhead $3.00 $0.90 per ounce $0.75 per package $14.00 per hour During the most recent month, 150,000 packages of the product were produced. Other salient information related to the production of the 150,000 packages follows: Direct material chemicals purchased Direct Material chemical used Direct Material packaging purchased Direct Material packaging used Direct Labor actual hours Actual Variable Overhead Actual Fixed Overhead Fixed Budget 235,000 @ $0.920 per ounce 230,000 310,000 @$0.72 per package 310,000 36,000 @$14.05 per hour $89,500 $105,000 $102,000 Required: Compute each of the following variances and make sure to indicate if the variance is favorable or unfavorable. a. Calculate the direct materials price variance for chemicals. b. Calculate the direct materials quantity variance for chemicals. C. Calculate the direct materials price variance for packaging. Calculate the direct materials quantity variance for packaging. Calculate the direct labor rate variance. d. Calculate the direct labor efficiency variance. Calculate the variable overhead spending variance. Calculate the variable overhead efficiency variance. Calculate the fixed overhead spending variance. e. f. g. h. i. The SCC Division of the Big-Drug Company uses standard costing to help control their production costs. The division's main product is a pharmaceutical product that comes in a multi-dose package. The standard variable costs per package are given below: Direct Materials chemicals 1.5 ounces @ Direct materials packages Direct Labor 2 packages @ of an hour @ Variable Overhead 0.25 $2.25 per direct labor hour per direct labor hour Fixed Overhead $3.00 $0.90 per ounce $0.75 per package $14.00 per hour During the most recent month, 150,000 packages of the product were produced. Other salient information related to the production of the 150,000 packages follows: Direct material chemicals purchased Direct Material chemical used Direct Material packaging purchased Direct Material packaging used Direct Labor actual hours Actual Variable Overhead Actual Fixed Overhead Fixed Budget 235,000 @ $0.920 per ounce 230,000 310,000 @$0.72 per package 310,000 36,000 @$14.05 per hour $89,500 $105,000 $102,000 Required: Compute each of the following variances and make sure to indicate if the variance is favorable or unfavorable. a. Calculate the direct materials price variance for chemicals. b. Calculate the direct materials quantity variance for chemicals. C. Calculate the direct materials price variance for packaging. Calculate the direct materials quantity variance for packaging. Calculate the direct labor rate variance. d. Calculate the direct labor efficiency variance. Calculate the variable overhead spending variance. Calculate the variable overhead efficiency variance. Calculate the fixed overhead spending variance. e. f. g. h. i.

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aDirect material price varianceChemicalStandard priceActual priceActual quantity 09092235000 4700 Un... View the full answer