Question: P11-1A Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly
P11-1A
Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours.
| Standard Unit Cost | Total Actual Costs | |
| Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.) | $8.80 |
$76,000 |
| Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.) | 22.00 |
209,050 |
| Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual |
6.00 |
54,900 |
| Total | $36.80 | $333,950 |
REQUIRED
Determine the following variances and indicate whether each is favorable or unfavorable:
a. Materials price and efficiency variances
b. Labor rate and efficiency variances
c. Variable overhead spending and efficiency variances
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