Ch 8 Homework Problem F Based on a standard volume of output of 96,000 units per month, the standard cost r unit of the product manufactured by Tahoe Company consists of Direct materials (0.25 pounds x $8 per pound) Direct labor (0.5 hours x $7.60 per hour) $2.00 3.80 2.50 1.50 $9.80 Variablc mnctrigoverhead Fixed manufacturing overhead ($144,000 in total) Total A total of 25,200 pounds of materials was purchased at $8.40 per pound. During May, 98,400 units were produced with the following costs: Direct materials used (24,000 pounds at $8.40) Direct labor (50,000 hours at $7.80) Variable manufacturing overhead Fixed manufacturing overhead $201,600 390,000 249,000 145,000 Compute the materials price and usage variances, the labor rate and efficiency variances, and the overhead budget and volume variances. (Overhead is applied based on units produced.) Alternate problems Alternate problem A The following data apply to Roseanne Company for August, when 2,500 units were produced: Materials used: 16,000 pounds Standard materials per unit: 6 pounds at $5.00 per pound Materials purchased: 24,000 pounds at $4.80 per pound Direct labor: 5,800 hours at a total cost of $69,600 Standard labor per unit: 2 hours at $11 per hour. Compute the materials and labor variances. Discuss possible explanations for the variances you calculated (meaning, what might have happened?)