Practice Problems in preparation for Berkshire Toy Company

 Bartholomew Corporation$$s master budget calls for the production of $6,000$ units of product monthly using $$33,000$ of direct labor. During the month of September, $5,600$ units of product were actually produced, and direct labor costs of $$30,970$ were actually incurred. A performance report utilizing flexible budgeting would report a flexible$-$budget variance for direct labor of:

 The following information is available for the Gabriel Products Company for the month of July:

Static Budget Actual

Units $5,0005,100$

Sales revenue $$60,000$ $$58,650$

Variable manufacturing costs $$15,000$ $$16,320$

Fixed manufacturing costs $$18,000$ $$17,000$

Variable marketing and administrative expense $$10,000$ $$10,500$

Fixed marketing and administrative expense $$12,000$ $$11,000$

The total sales$-$volume variance for the month of July would be:

The following information pertains to questions $3$ through $8.$

Harold wants to analyze the following information about the month of July:

Standard Price Standard Quantity

Direct materials $$51\mathrm{.}0$ pound

Direct labor $$102\mathrm{.}0$ hours

The plan was to produce $1,000$ tables, but Harold only actually produced $900.$ During the month, he actually incurred direct materials costs of $$4,860$ using $810$ pounds of material, and he actually incurred $$17,010$ in direct labor costs using $1,890$ direct labor hours. Perform a complete Level$-3$ variance analysis for direct materials and direct labor and then answer the questions below:

$3.$ What is the direct materials flexible budget variance?

$4.$ What is the direct materials price variance?

$5.$ What is the direct materials efficiency variance?

$6.$ What is the direct labor flexible budget variance?

$7.$ What is the direct labor price variance?

$8.$ What is the direct labor efficiency variance?

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