Chapter $10$ Comprehensive Problem $(30$ points$)$:

Standard Cost Card

SQ or hours SP Standard Cost

Direct Materials $3,0$ pounds $$2,10$ per pound $$6,30$

Direct Labor $0,8$ hours $$9,50$ per hour $$7,60$

Variable MOH $0,4$ hours$*$ $$3,00$ per hour $$1,20$

Total Standard Variable Cost $$15,10$

$*$based on machine hours

Sadie has determined that during October the plant produced $15,000$ pools and incurred the following costs:

a$.$ Purchased $49,200$ pounds of materials at a cost of $$1\mathrm{.}95$ per pound.

b$.$ Worked $11,700$ direct labor hours at a cost of $$10\mathrm{.}00$ per hour.

c$.$ Incurred total variable MOH of $$18,890$ for the month. A total of $5,900$ machine$-$hours were recorded.

Required:

$1.$ Compute the following variances for October:

a$.$ DM price & quantity variances

b$.$ DL rate & efficiency variances

c$.$ Variable MOH spending & efficiency variances

$2.$ Write a sentence explaining the DM variance and DL variance in the yellow box

DM variance

AQ x AP AQ x SP SQ x SP

x x x

$**$be sure to indicate if it is "favorable" or "unfavorable"$**$

DL Variance

AH x AR AH x SR SH x SR

x x x

$**$be sure to indicate if it is "favorable" or "unfavorable"$**$

Variable OH Variance

AH x AR AH x SR SH x SR

x x x

$**$be sure to indicate if it is "favorable" or "unfavorable"$**$