Acme Manufacturing has the following standard cost sheet for one of its products:

Direct materials (6 ft. @ $10)	$60.00
Direct labor (1.5 hours @ $20)	30.00
Variable overhead (1.5 hours @ $8)	12.00
Fixed overhead (1.5 hours @ $4*)	6.00
Standard unit cost	$108.00

*Rate based on expected activity of 17,000 hours

During the most recent year, the following actual results were recorded:

Production	12,000 units
Fixed overhead	$ 66,000
Variable overhead	$138,000
Direct materials (71,750 ft. purchased)	$723,240
Direct labor (17,900 hours)	$365,160

Compute the following variances:

a) Direct materials and usage variances.

b) Direct labor rate and efficiency variances.

c) Variable overhead spending and efficiency variances.

Answer rating: 100% (QA)

a Direct materials and usage variances Direct materials price variance 723240 60 12000 3240 Direc... View the full answer