Carson Construction Consultants performs cement core tests in its Greenville laboratory. The following standard cost for the
Question:
Carson Construction Consultants performs cement core tests in its Greenville laboratory. The following standard cost for the tests have been developed by the company's controllers Landon Carson, based on performing 2,100 core teats per month.
Standard Price | Standard Quantity | Standard Cost | |
Direct materials | $0.50 per pound | 4 pounds | $ 2.00 |
Direct labor | $10 per 13LH | .5121,H | 5.00 |
Variable overhead | $9 per OLD | .5 OLD | 4.50 |
Fixed overhead | $16 per 13LH | .5 DLH | 8.00 |
Total standard cost per test | $19.50 |
At the end of March, London reported the following operational results:
- The company actually performed 2,250 care tests during the month.
- 8,500 pounds of direct materials were purchased during the month at a total cost of $5,600.
- 6,300 pounds of direct materials were used to conduct the core tests.
- 850 direct labor hours were worked at a total cost of $9,775.
- Actual variable overhead was $7,800.
- Actual fixed overhead was $15,250.
Required
a. Calculate the direct materials price valiance for March.
b. Calculate the direct materials quantity variance for March.
c. Calculate the direct labor rate variance for March.
d. Calculate the direct labor efficiency variance for March.
e. Calculate the variable overhead spending variance for March. P. Calculate the variable overhead efficiency variance for March.
f. Calculate the fixed overhead spending variance for March.
g. Prepare a memo to Landon Carson providing possible explanations for the direct materials and direct labor variances.
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