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Chillco Corporation produces containers of frozen food. During April, Chillco produced 780 cases of food...

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Accounting

Chillco Corporation produces containers of frozen food. During April, Chillco produced 780 cases of food and incurred the following actual costs.

Variable overhead$6,800

Fixed overhead7,900

Actual labor cost (3,500 direct-labor hours)57,050

Actual material cost (21,000 pounds purchased and used)42,000

Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows:

Standard Costs per Case

Direct labor (3 hours at $16 per hour)$48.00

Direct material (25 pounds at $1.70 per pound)42.50

Variable overhead (3 direct-labor hours at $2.00 per hour)6.00

Fixed overhead (3 direct-labor hours at $2 per hour)6.00

Total$102.50

Annual Budget Information

Variable overhead$60,000

Fixed overhead$60,000

Planned activity for year30,000direct-labor hours

Direct-material price variance

Direct-material purchase price variance

Direct-material quantity variance

Direct-labor rate variance

Direct-labor efficiency variance

Variable-overhead spending variance

Variable-overhead efficiency variance

Fixed-overhead budget variance

Fixed-overhead volume variance

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