Course: Accounting for Decision Making and Control

The West Point plan of Walkers Electronics Company has the following standards for component C91:

Standards:

Material 2 units of material B

Material Price $10 per unit of B

Direct labor 1 hour

Wage rate $10 per direct labour hour

Variable support cost rate $25 per direct labour hour

Actual results for March

Used 4,200 units of B, purchased at $9.75 per unit of B

Paid for 2,000 direct labour hours at $11 per hour

Incurred $48,000 of variable support costs

Manufactured 2,000 units of component C91

Required:

Determineany (5) five of following variances for March:

1. Total direct material cost variance
2. Total direct labour cost variance
3. Total variable support cost variance
4. Direct material price variance
5. Direct material quality variance
6. Direct labour rate variance
7. Direct labour efficiency variance