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The following standard costs were developed for one of the products of ABC Company:

STANDARD COST CARD PER UNIT

Direct materials: 20 pounds x $10 per pound .................................. $200.00

Direct labor: 2 hours x $17 per hour .................................................... 34.00

Variable overhead: 2 hours x $10 per hour .......................................... 20.00

Fixed overhead: 2 hours x $8 per hour ................................................ 16.00

Total standard cost per unit ............................................................. $ 270.00

The following information is available regarding the company's operations for the period:

STANDARD COST CARD PER UNIT

Direct materials: 20 pounds x $10 per pound .................................. $200.00

Direct labor: 2 hours x $17 per hour .................................................... 34.00

Variable overhead: 2 hours x $10 per hour .......................................... 20.00

Fixed overhead: 2 hours x $8 per hour ................................................ 16.00

Total standard cost per unit ............................................................. $ 270.00

The following information is available regarding the company's operations for the period:

Budgeted fixed overhead for the period is $880,000, and the standard fixed overhead rate is based on an expected capacity of 110,000 direct labor hours.

Required:

a. Calculate the materials price variance and material usage variance; indicate whether it is favorable or unfavorable.

b. Calculate the labor rate variance and labor efficiency variance; indicate whether it is favorable or unfavorable.

c. Calculate the variable overhead spending variance and variable overhead efficiency variance; indicate whether it is favorable or unfavorable.

d. Calculate the fixed overhead spending variance and the fixed overhead volume variance; indicate whether it is favorable orunfavorable.