Cost ACC chapters 7 & 8 comprehensive

Chapters 7 and 8- Comprehensive Varlance Problem e are at the end of the year and Fluffy (Bubba's pet iguana) has eaten some of our cost records From the papers that Fluffy did not eat, here is what we still know... We thought we would make 6000 chairs . We actually made 5000 chairs. Each chair was supposed to use 3 pounds of material. e bought 18000 pounds of material. pound of material was supposed to cost $2.00. The Direct materials Price Variance was $9000 Unfavorable. We used 16000 pounds of material. We actually incurred $182,000 of direct labor cost. We thought each chair would take 5 hours to make. We thought we would have to pay $7.00 per direct labor hour. We actually used 28,000 hours to make all of the chairs. . We thought we would pay $0.50 more per hour for our direct labor than what we actually paid We allocate variable overhead on the basis of direct labor hours. per hour. We budgeted $150,000 for variable overhead. The standard fixed overhead rate was $4.00 per miachine hour. . We spent $131,000 for variable overhead and $37,000 for fixed overhead We thought it would take 2 machine hours for each chair we produced. (Do not forget that if you are giving me a variance you have to put whether it is Favorable or Unfavorable or it is an incorrect answer.) 1) What did we pay per pound of material? 2) What was the Direct Material Quantity Variance? 3) How much did we pay per hour for labor? 4) What was the Direct Labor Spending Variance? 5) What was the Direct Labor Efficiency Variance? 6) What was the Variable Overhead Spending Variance? 7) What was the Variable Overhead Efficiency Variance? 8) What was the Fixed Overhead Spending Variance? 9) What was the Production Volume Variance? 10) How much did we budget it total for fixed overhead? Page 14 of 17