MANAGERIAL ACCOUNTING HANDOUT PROBLEM 10 Score Name Section Problem (10 points). Bunchberry Corporation manufactures a product with the attached standard costs and actual production results for the month of July 20X4. REQUIRED: Calculate the following manufacturing cost variances for the company, showing all supporting computations. (1) Direct materials price variance, based upon materials purchased. (2) Direct materials quantity variance, based upon materials used. (3) Direct labor price (rate) variance. Direct labor quantity (efficiency) variance. (5) Variable manufacturing overhead spending variance. (6) Variable manufacturing overhead efficiency variance. Fixed manufacturing overhead spending variance. (8) Fixed manufacturing overhead volume variance. BUNCHBERRY CORPORATION STANDARD COSTS OF PRODUCTION FOR PRODUCT Direct materials (20 yards at $1.35 per yard) S Direct labor (4 hours at $9.00 per hour) Variable manufacturing overhead (4 hours at $5.00 per hour) Fixed manufacturing overhead (4 hours at $3.00 per hour) (based upon normal capacity of 2,000 hours per month) Total standard cost per unit S 27.00 36.00 20.00 12.00 95.00 BUNCHBERRY CORPORATION ACTUAL RESULTS OF MANUFACTURING OPERATIONS FOR MONTH OF JULY 20X4 Direct materials purchased 18,000 yards at $1.38 per yard Direct materials used 9,500 yards Direct labor 2,100 hours at $9.15 per hour Total manufacturing overhead $16,650 of which $6,800 is fixed Units produced during month 490