Question: Willow Inc. has provided the following information: Standards: Per unit Direct materials 10 lb @ $3.50/lb $ 35.00 Direct labor 2 hours @ $23.50/hour 47.00

Willow Inc. has provided the following information:

Standards:		Per unit
Direct materials	10 lb @ $3.50/lb	$	35.00
Direct labor	2 hours @ $23.50/hour		47.00
Variable overhead	2 hours @ $17/hour		34.00
Fixed overhead			25.00
Total		$	141.00

Budgeted production = 7,300 units

Actual results
Materials	75,220	lbs	$	261,490
Direct labor	14,400	actual hours	$	328,445
Variable overhead			$	251,330
Fixed overhead			$	179,440
Units produced	7,600	units

a. Calculate the direct materials price variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) b. Calculate the direct materials quantity variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) c. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) d. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) e. Calculate the variable overhead rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) f. Calculate the variable overhead efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) g. Calculate the fixed overhead spending variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).)

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