Question: Variable and fixed overhead are applied based on Direct Labor HoursStandards Material: 2.5 pounds per unit @$4.2 per pound Labor: 2 hours per

Variable and fixed overhead are applied based on Direct Labor HoursStandards

Material: 2.5 pounds per unit @$4.2 per pound

Labor: 2 hours per unit @$9.5 per hour

Variable OH: 2 hours per unit @$3 per hour

Fixed OH: 2 hours per unit @$3.5 per hour

based on budgeted production of2,700 unitsActuals

Production: 3,000 units produced during the month

Material: 8,200 pounds purchased and used @ $3.85 per pound

Labor: 6,300 direct labor hours @ $10 per hour

Variable OH: $21,450

Fixed OH: $19,450

1.what is Material price variance?

2. what is Material usage (quantity) variance?

3. what is Labor rate variance?

4. Define Labor efficiency variance.

5. what will be Variable overhead spending variance?

6. what will be Variable overhead usage variance?

7.what will be Fixed overhead spending variane?

8.what will be Fixed overhead volume variance?

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