Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are for March:

Required
a. Prepare a variance analysis for each variable cost for each product.
b. Prepare a fixed overhead variance analysis for each product like the one in Exhibit16.13.

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Standards Mountain Mist Valley Stream Direct materials ._ _- . . . -.. Direct labor Variable overhead (per direct labor-hour). Fixed overhead (per month... Expected activity (direct labor-hours) 3 ounces at $15 per ounce 5 hours at $60 per hour $48 $335,340 5,750 4 ounces at $16.50 per ounce 6 hours at $75 per hour $52.50 $397,800 7,800 Actual results Direct material (purchased and used).· Direct labor .. Variable overhead Fixed overhead. Units produced (actual) 3,100 ounces at $13.50 per ounce 4,900 hours at $60.75 per hour $242,550 S313,950 1,000 units 4,700 ounces at $17.25 per ounce 7,400 hours at $76.50 per hour $378,510 $396,000 1,200 units