Cost Accounting Assignment:

Complete variance analysis

Given the following information for Company XYZ, find all 9 variances.

{Material price usage and material quantity, 2 labors, 2 variance and 3 variance factory overhead....not the material purchases price variance}

Company XYZ has a budgeted monthly normal capacity of 15,000 direct labor hours with a standard production of 7500 units at that capacity. Standard costs are as follows: [so it takes 2 hours to make one.]

Material..............3 lbs. @ $.75/lb

Labor.................$13.50/dlh

Overhead..........Fixed is $7500; Variable is $1.20/hr.

During April actual factory overhead was $25,250. 14,500 labor hours cost $188,500. 7000 units were produced using 21,000 pounds of material that cost $.78/lb.