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A:

Acme Companys production budget for August is 23,000 units and includes the following component unit costs: direct materials, $9.00; direct labor, $11.00; variable overhead, $5.80. Budgeted fixed overhead is $49,000. Actual production in August was 24,075 units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.00; variable overhead, $6.80. Actual fixed overhead was $52,200. The standard direct material cost per unit consists of 9 pounds of raw material at $1 per pound. During August, 267,500 pounds of raw material were used that were purchased at $0.90 per pound. Required: Calculate the materials price variance and materials usage variance for August. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

B:

Acme Companys production budget for August is 17,800 units and includes the following component unit costs: direct materials, $6.00; direct labor, $10.00; variable overhead, $6.00. Budgeted fixed overhead is $35,000. Actual production in August was 19,368 units. Actual unit component costs incurred during August include direct materials, $8.10; direct labor, $9.50; variable overhead, $7.50. Actual fixed overhead was $36,800. The standard direct labor cost per unit consists of 0.5 hour of labor time at $20 per hour. During August, $183,996 of actual labor cost was incurred for 8,070 direct labor hours. Required: Calculate the labor rate variance and labor efficiency variance for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

C:

Acme Companys production budget for August is 18,300 units and includes the following component unit costs: direct materials, $6.3; direct labor, $10.8; variable overhead, $6.5. Budgeted fixed overhead is $40,000. Actual production in August was 19,110 units. Actual unit component costs incurred during August include direct materials, $9.00; direct labor, $10.20; variable overhead, $7.60. Actual fixed overhead was $42,300. The standard variable overhead rate per unit consists of $6.5 per machine hour and each unit is allowed a standard of 1 hour of machine time. During August, $145,236 of actual variable overhead cost was incurred for 20,748 machine hours. Required: Calculate the variable overhead spending variance and the variable overhead efficiency variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

D:

Acme Companys production budget for August is 18,000 units and includes the following component unit costs: direct materials, $8.0; direct labor, $10.5; variable overhead, $6.4. Budgeted fixed overhead is $37,000. Actual production in August was 19,950 units. Actual unit component costs incurred during August include direct materials, $8.70; direct labor, $9.90; variable overhead, $7.30. Actual fixed overhead was $39,000. The standard fixed overhead application rate per unit consists of $2 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

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