MANAGERIAL ACCOUNTING HANDOUT PROBLEM 9 Name Seore Section Problem (10 points). Florida Company manufactures one product, with standard costs and quantities as attached. Standards have been computed on an expected activity level of 2,400 direct labor hours per month. Actual activity and costs for the pust month are also attached. (c) REQUIRED: Compute the following production cost variances. Round all calculations to the nearest whole dollar, (a) Direct Materials Price Variance. (b) Direct Materials Quantity Variance. Direct Labor Price (Rate) Variance. (d) Direct Labor Quantity (Efficiency) Variance. (e) Variable Manufacturing Overhead Price (Spending) Variance. (1) Variable Manufacturing Overhead Efficiency (Quantity) Variance. (8) Fixed Manufacturing Overhead Price (Spending) Variance. (h) Fixed Manufacturing Overhead Volume Variance. 18.00 15.00 FLORIDA COMPANY STANDARDS FOR MANUFACTURING COSTS AND QUANTITIES Direct Materials, 20 meters @ $0.90 per meter s Direct Labor, 2 hours @ $7.50 per hour Manufacturing Overhead Applied: Variable Overhead, 2 hours @ $4.00 per hour Fixed Overhead, 2 hours @ $1.75 per hour Total Standard Manufacturing Cost Per Unit 8.00 3.50 44.50 FLORIDA COMPANY ACTUAL RESULTS FOR MANUFACTURING COSTS AND QUANTITIES FOR PAST MONTH Direct Materials Purchased and Used 18,000 meters @ $0.92 per meter Direct Labor 2,100 hours @ $7.35 per hour Variable Manufacturing Overhead s 7,900 Fixed Manufacturing Overhead s 3,200 Units Produced 950