Chillco Corporation produces containers of frozen food. During April, Chillco produced 750 cases of food and...

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Chillco Corporation produces containers of frozen food. During April, Chillco produced 750 cases of food and incurred the following actual costs. Variable overhead Fixed overhead Actual labor cost (4,000 direct-labor hours) Actual material cost (12,000 pounds purchased and used) Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows: Standard Costs per Case Direct labor (4 hours at $15 per hour) Direct material (15 pounds at $2.70 per pound) Variable overhead (4 direct-labor hours at $1.80 per hour) Fixed overhead (4 direct-labor hours at $3 per hour) Total Annual Budget Information $ 72,000 $120,000 Variable overhead Fixed overhead Planned activity for year Direct-material price variance Direct-material purchase price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance $ 6,200 11,000 62,000 36,000 40,000 direct-labor hours. Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance Fixed-overhead volume variance Required: Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations.) $ 60.00 40.50 7.20 12.00 $119.70 Chillco Corporation produces containers of frozen food. During April, Chillco produced 750 cases of food and incurred the following actual costs. Variable overhead Fixed overhead Actual labor cost (4,000 direct-labor hours) Actual material cost (12,000 pounds purchased and used) Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows: Standard Costs per Case Direct labor (4 hours at $15 per hour) Direct material (15 pounds at $2.70 per pound) Variable overhead (4 direct-labor hours at $1.80 per hour) Fixed overhead (4 direct-labor hours at $3 per hour) Total Annual Budget Information $ 72,000 $120,000 Variable overhead Fixed overhead Planned activity for year Direct-material price variance Direct-material purchase price variance Direct-material quantity variance Direct-labor rate variance Direct-labor efficiency variance $ 6,200 11,000 62,000 36,000 40,000 direct-labor hours. Variable-overhead spending variance Variable-overhead efficiency variance Fixed-overhead budget variance Fixed-overhead volume variance Required: Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations.) $ 60.00 40.50 7.20 12.00 $119.70

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ANSWER Directmaterial price variance Favorable Directmaterial purchase price variance Favorable Directmaterial quantity variance Favorable Directlabor rate variance Favorable Directlabor efficiency va... View the full answer