MANAGERIAL ACCOUNTING HANDOUT PROBLEM Score Name Section Problem (10 points). Rachmaninov Company manufactures Florimene, used in the plastics industry. The company uses a standard cost system. The attached data is available for the month of August. (3) REQUIRED: Calculate the following variances for the company for the month of August, (1) Direct materials price variance. (2) Direct materials quantity variance. Direct labor price (rate) variance. (4) Direct labor quantity (efficiency) variance. (5) Variable manufacturing overhead price (spending) variance. (6) Variable manufacturing overhead quantity (efficiency) variance. Fixed manufacturing overhead price (spending) variance. (8) Fixed manufacturing overhead volume variance. RACHMANINOV COMPANY STANDARDS FOR PRODUCT FLORIMENE Direct materials 3 kilograms at $1.00 per kilogram Direct labor 5 hours at $4.00 per hour Variable manufacturing overhead $ 3.20 per direct labor hour Fixed manufacturing overhead per month $ 22,356 Normal capacity 5,750 direct labor hours RACHMANINOV COMPANY ACTUAL RESULTS FOR MONTH OF AUGUST Direct materials purchased and used 3,100 kilograms at $0.90 per kilogram Direct labor 4,900 hours at $4.05 per hour Variable manufacturing overhead $ 16,170 Fixed manufacturing overhead $ 20,930 Units produced 1,000 units