First Trax Company manufactures snowboards. Its standard cost information follows.

First Trax has the following actual results for the month of June:

Number of units produced and sold ................................................................ 600Number of square feet of fiberglass purchased and used ........................ 7,800Cost of fiberglass purchased and used .................................................... $42,900Number of labor hours worked .................................................................... 2,700Direct labor cost ......................................................................................... $40,500Variable overhead cost .............................................................................. $12,600Fixed overhead cost ................................................................................... $62,000

Required:

Calculate the following for First Trax:

1. Direct materials price, quantity, and spending variances.

2. Direct labor rate, efficiency, and spending variances.

3. Variable overhead rate, efficiency, and spending variances.

4. Fixed overhead spending (budget) and volume variances.

Transcribed Image Text:

Standard Standard Price (Rate) Standard Unit Cost Quantity 12 sq.ft. 5 hr. 5 hr Direct materials (fiberglass) Direct labor Variable manufacturing overhead (25% of direct labor cost) Fixed manufacturing overhead ($60,000 + 500 units) $ 6 per sq. ft. $16 per hr. $ 4 per hr $ 72.00 80.00 20.00 120.00