PROBLEM 11-9 excel Performing a Comprehensive Variance Analysis Incomplete Data; Preparing Journal Entries [LO3 - CC15, 18; LO6-CC27A, 28A] CHECK FIGURES (1a) (3) Materials price variance: $6,000 F Variable overhead spending variance: $1,650 F Maple Products Ltd., a U.S. company, manufactures hockey sticks that are used worldwide. The standard cost of one hockey stick is as follows: Standard Quantity or Hours Standard Price Standard or Rate Cost Direct materials ? feet $3.00 per foot $ ? Direct labour 2 hours ? per hour ? Variable manufacturing overhead ? hours 1.30 per hour ? Total standard cost $27.00 Last year, 8,000 hockey sticks were produced and sold. Selected cost data relating to last year's operations follow: Dr Cr Direct materials purchased (60,000 feet) $174,000 Wages payable (? hours) Work in process-direct materials 115,200 Direct labour rate variance Variable overhead efficiency variance 650 $79,200* 3,300 *Relates to the actual direct labour cost for the year The following additional information is available for last year's operations: a. No materials were on hand at the start of last year. Some of the materials purchased during the year were still on hand in the warehouse at the end of the year. b. The variable manufacturing overhead rate is based on direct labour-hours. Total actual variable manufacturing overhead cost for last year was $19,800. c. Actual direct materials usage for last year exceeded the standard by 0.2 foot Required: 1. For direct materials: a. Compute the price and quantity variances for last year. per stick. b. Prepare journal entries to record all activities relating to direct materials for last year. 2. For direct labour: a. Verify the rate variance given above and compute the efficiency variance for last year. Page 573 b. Prepare a journal entry to record activity relating to direct labour for last year. 3. Compute the variable overhead spending variance for last year and verify the variable overhead efficiency variance given above. 4. State possible causes of each variance that you have computed. 5. Prepare a completed standard cost card for one hockey stick.