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Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead...

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Accounting

Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given:

Standard costs per unit:

Raw materials (1.5 grams at $16 per gram) $24.00

Direct labor (0.75 hours at $8 per hour) $6.00

Variable overhead (0.75 hours at $3 per hour) $2.25

Actual experience for current year:

Units produced 22,400 units

Purchase of raw materials (21,000 gramsn at $17 per gram) $357,000

Raw materials used 33,400 grams

Direct labor(16,750 hours at $8 per hour) $134,000

Variable overhead cost incurred $48,575

Required:

Compute the following variances for raw materials, direct labor, and variable overhead, assuming the price variance for materials is recognized at point of purchase:

1. Direct materials price variance for materials is recognized at point of purchase:

2. Direct labor rate variance AND Direct material quantity variance.

3. Variable overhead spending variance and Variable overhead efficiency variance.

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