Rigsby Resins Company processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 2,700 units of product were as follows:

Each unit requires 0.8 hour of direct labor.

Instructions
Determine
(a) The price variance, quantity variance, and total direct materials cost variance
(b) The rate variance, time variance, and total direct labor cost variance
(c) Variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead costvariance.

Transcribed Image Text:

Standard Costs Actual Costs Direct materials Direct labor Factory overhead 6,750 pounds at $6.20 2,160 hours at $20.10 Rates per direct labor hour, based on 100% of normal capacity of 2,100 direct labor hours: 6,900 pounds at $6.15 2,200 hours at $20.50 Variable cost, $2.75 Fixed cost, $16.50 $5,750 variable cost $34,650 fixed cost