QUESTION 1

3. Variable overhead spending and efficiency variances. 4. Fixed overhead spending and volume variances.Materials, Labor, and Overhead Variances Wangsgard Manufacturing has the following standard cost sheet for one of its products: Direct materials (2 ft. @ $5) $ 10 Direct labor (0.5 hr. @ $10) 5 Fixed overhead (0.5 hr. @ $2)* 1 Variable overhead (0.5 hr. @ $4) Standard unit cost $18 "Rate based on expected activity of 2,500 hours. During the most recent year, the following actual results were recorded: Production 6,000 units Direct materials (11,750 ft. purchased and used) $ 61,100 Direct labor (2,900 hrs.) 29,580 Fixed overhead 6,000 Variable overhead 10,500 Required Compute the following variances: 1. Materials price and usage variances. 2. Labor rate and efficiency variances. 3. Variable overhead spending and efficiency variances. 4. Fixed overhead spending and volume variances.MATERIALS, LABOR, AND OVERHEAD VARIANCES Bertgon Manufacturing has the following standard cost sheet for one of its products: Direct materials (6 ft. @ $5) $30 Direct labor (1.5 hrs. @ $10) 15 Fixed overhead (1.5 hrs. @ $2*) 3 Variable overhead (1.5 hrs. @ $4* ) 6 Standard unit cost $54 *Rate based on expected activity of 17,000 hours. During the most recent year, the following actual results were recorded: Production 12,000 units Fixed overhead $33,000 Variable overhead $69,000 Direct materials (71,750 ft. purchased) $361,620 Direct labor (17,900 hrs.) $182,580 Required: Compute the following variances: 1. Direct materials price and usage variances. 2. Direct labor rate and efficiency variances.Xavier Company produces a single product. Variable manufacturing overhead is applied to prod- ucts on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 6 ounces at $0.50 per ounce . . . . $ 3.00 Direct labor: 0.6 hours at $30.00 per hour . . . . . . 18.00 Variable manufacturing overhead: 0.6 hours at $10.00 per hour . . . . .. 6.00 Total standard variable cost per unit . . . $27.00 During June, 2,000 units were produced. The costs associated with June's operations were as follows: Material purchased: 18,000 ounces at $0.60 per ounce . . . . .. $10,800 Material used in production: 14,000 ounces . . . . . .. Direct labor: 1,100 hours at $30.50 per hour . . . .. $33,550 Variable manufacturing overhead costs incurred . . . .. $12,980 Required: Compute the direct materials, direct labor, and variable manufacturing overhead variances.39. The following standards have been established for a raw material used in the production of product N70: Standard quantity of the material per unit of output ....... 8.0 liters Standard price of the material $18.30 per liter The following data pertain to a recent month's operations: Actual material purchased.. 6.600 liters Actual cost of material purchased. $119.460 Actual material used in production ...... 6.000 liters 720 units of product N70 Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month? c. Prepare journal entries to record the purchase and use of the raw material during the month. (All raw materials are purchased on account.)