Managerial accounting Chapter 10

I K Please complete the Problem as follows: Lumpy Company set the following standard unit costs for its single product. Direct materials (5 lbs. @ $2 per lb.) 10.00 Direct labor (0.3 hrs. @ $15 per hr.) Factory OH-variable (0.3 hrs. @ $10 per hr.) Factory OH-fixed (0.3 hrs. @ $14 per hr.) 4.20 Total Standard Cost 21.70 4.50 3.00 During the current quarter, the company operated at 70 of capacity and produced 420,000 units of product; direct labor hours worked were 125,000. Actual costs incurred during the current quarter follow: Direct materials (2,000,000 lbs. @ $2.15 per Ib.) Direct labor (125,000 hrs. @ $15.50) Fixed factory overhead costs Variable factory overhead costs Total Actual Costs $4,300,000 $ 1,937,500 1,960,000 1,200,000 $ 9,397,500 Required 1) Compute the direct materials price, quantity and total variances. For each variance, state whether favorable or unfavorable. 2) Compute the direct labor rate, efficiency and total variances. For each variance, state whether favorable or unfavorable. 3) Compute the variable overhead variance for rate, efficiency and total. State whether each is favorable or unfavorable. Check (1) Materials variances: Price $300,000-U; Quantity, $200,000-F (2) Labor variances: Rate, $62,500-U; Efficiency, $15,000-F