during September of the current year, the controller was asked to perform variance analysis for August. The January operating data provided the standard prices, rates, times and quantities per case. There were 1500 actual cases produced during August, which was 250 more cases than planned at the beginning of the month. Actual data for August were as follows

The prices of the materials were different from standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The mixing department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The filing department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard.

A.) determine and interpret the direct materials price and quantity variances for the three materials

B.) determine and interpret the direct labor rate and time variances for the two departments. Round hours to the nearest 10th of an hour.

C.) determine and interpret the factory overhead controllable variance.

D.) determine and interpret the factory overhead volume variance

E.) why are the standard direct labor and direct materials costs in the calculations for part A.) and part B.) based on the actual 1500 case production volume rather than the plant 1375 cases of production used in the budgets for part B.) and C.) of previous problem. (last two photos will be questions mentioned above.

Actual Direct Materials Price per Unit Quantity per Case Cream base $0.016 per oz. 102 oz. Natural oils $0.32 per oz. 31 oz. Bottle (8-oz.) $0.42 per bottle 12.5 bottles Actual Direct Actual Direct Labor Labor Rate Time per Case Mixing $18.20 19.50 min. Filling 14.00 5.60 min. Actual variable overhead $305.00 Normal volume 1,600 cases Verhead cost Budget For the Month Ended August 31 Fixed Variable Total Factory overhead: Utilities $ $ $ $ Facility lease Equipment depreciation Supplies Total $ $ $ $ Revenue from sales Finished goods inventory, August 1 Direct materials: Direct materials inventory, August 1 Direct materials purchases Cost of direct materials available for use $ Less direct materials inventory, August 31 Cost of direct materials placed in production $ Direct labor Factory overhead Cost of goods manufactured Cost of finished goods available for sale Less direct materials inventory, AU Cost of direct materials placed in production $ Direct labor Factory overhead Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income before income tax Actual Direct Materials Price per Unit Quantity per Case Cream base $0.016 per oz. 102 oz. Natural oils $0.32 per oz. 31 oz. Bottle (8-oz.) $0.42 per bottle 12.5 bottles Actual Direct Actual Direct Labor Labor Rate Time per Case Mixing $18.20 19.50 min. Filling 14.00 5.60 min. Actual variable overhead $305.00 Normal volume 1,600 cases Verhead cost Budget For the Month Ended August 31 Fixed Variable Total Factory overhead: Utilities $ $ $ $ Facility lease Equipment depreciation Supplies Total $ $ $ $ Revenue from sales Finished goods inventory, August 1 Direct materials: Direct materials inventory, August 1 Direct materials purchases Cost of direct materials available for use $ Less direct materials inventory, August 31 Cost of direct materials placed in production $ Direct labor Factory overhead Cost of goods manufactured Cost of finished goods available for sale Less direct materials inventory, AU Cost of direct materials placed in production $ Direct labor Factory overhead Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income before income tax