Problem $16-71($Algo$)$ Comprehensive Variance Problem $($LO $16-5,6)$

The Valley Plant of Patton Supply manufactures a single product. The standard cost sheet for the product follows:

$$

Direct materials, $2$ pounds at $$10\mathrm{.}00$ per pound$ $20$Direct labor, $0\mathrm{.}8$ hours at $$31\mathrm{.}25$ per hour$25$Factory overhead applied at $120\%$ of direct labor $($variable costs $=$ $$18$; fixed costs $=$ $$12)30$Variable selling and administrative cost$21$Fixed selling and administrative cost$23$Total unit costs$ $119$

$$

Standards have been computed based on a master budget activity level of $20,550$ direct labor$-$hours per month. Actual activity for the past month was as follows:

$$

Materials used$46,720$pounds at $$9\mathrm{.}90$ per poundDirect labor$18,020$hours at $$32$ per hourTotal factory overhead$ $668,000$Production$22,830$units

$$

Required:

a$.$ Prepare variance analyses for the variable and fixed costs.

b$.$ Complete the following table with the total variance for a resource. Problem $16-71($Algo$)$ Comprehenslve Varlance Problem $($LO $16-5,6)$

The Valley Plant of Patton Supply manufactures a single product. The standard cost sheet for the product follows:

Standards have been computed based on a master budget activity level of $20\mathrm{.}550$ direct labor$-$hours per month. Actual activity for the past month was as follows:

Required:

a$.$ Prepare variance analyses for the variable and fixed costs.

b$.$ Complete the following table with the total variance for a resource.

Complete this question by entering your answers in the tabs below.

Prepare variance analyses for the variable and fixed costs.

Note: Indicate the effect of each variance by selecting $"\backslash ($ F $\backslash )"$ for favorable, or $"\backslash ($ U $\backslash )"$ for unfavorable. If there is no effect, do not select either option.