Question 4 Chapter 10

Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours.

			Standard Units Costs			Total Actual Costs
Direct material
Standard (2 lb. @ $16.00/lb.)			$32
Actual (4,200 lb. @ $16.80/lb.)					$70,560
Direct labor
Standard (0.5 hr. @ $31/hr.)			$15.50
Actual (950 hrs. @ $30/hr.)					28,500
Variable overhead
Standard (0.5 hr. @ $13/hr.)			$6.50
Actual			-		13,450
Total			$54		$112,510

Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

Materials Variances
Actual cost:
Split cost:
Standard cost:
Materials price
Materials efficiency

Labor Variances
Actual cost:
Split cost:
Standard cost:
Labor rate
Labor efficiency

Variable Overhead Variances
Actual cost:
Split cost:
Standard cost:
Variable overhead spending
Variable overhead efficiency