Jata table

Requirements

Direct materials price variance $($based on purchases$)$

Direct materials efficiency variance

Direct manufacturing labor costs incurred

Variable manufacturing overhead flexible$-$budget variance

Variable manufacturing overhead efficiency variance

Fixed manufacturing overhead incurred

$$177,100F$

$$759,000U$

$420,250$

$10,650U$

$18,600U$

$958,420$

More info

At the $40,000$ budgeted direct manufacturing labor$-$hour level for August, budgeted direct manufacturing labor is $$800,000,$ budgeted variable manufacturing overhead is $$400,000,$ and budgeted fixed manufacturing overhead is $$1,000,000.$

The standard cost per pound of direct materials is $$11\mathrm{.}50.$ The standard allowance is $6$ pounds of direct materials for each unit of product.

During August, $20,000$ units of product were produced. There was no beginning inventory of direct materials. There was no beginning or ending work in process. In August, the direct materials price variance was $$1\mathrm{.}10$ per pound.

In July, labor unrest caused a major slowdown in the pace of production, resulting in an unfavorable direct manufacturing labor efficiency variance of $$25,000.$ There was no direct manufacturing labor price variance. Labor unrest persisted into August. Some workers quit. Their replacements had to be hired at higher wage rates, which had to be extended to all workers. The actual average wage rate in August exceeded the standard average wage rate by $$0\mathrm{.}50$ per hour.