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Granison Corporation applies overhead on the basis of direct labor hours. Budgeted production for the period was set at 10,000 units. Total manufacturing overhead is budgeted at $1,600,000, of which 60% is fixed. The following material and labor standard costs were developed for the only product of Granison Corporation:
Standards
	Quantity	Cost
Materials	4 Feet	$14 per foot
Direct Labor	8 Hours	$10 per hour
The following information is available regarding the company's actual operations for the period:
Actuals
Units produced	11,000
Materials purchased	52,000 Feet	$13.70 per foot
Materials used	52,000 Feet
Direct Labor	84,000 Hours	$840,000
Manufacturing overhead:
Variable	$756,000
Fixed	$1,000,000

Required
A. Calculate the following variances:
1. Materials price variance
2. Materials efficiency
3. Labor rate variance
4. Labor efficiency variance
5. Variable overhead spending variance
6. Variable overhead spending variance
7. Fixed overhead spending variance
8. Fixed overhead volume variance
B. Prepare the journal entry that is needed to record the purchase of raw materials at the standard price, and the related variance.
C. Prepare the journal entry that is needed to record the transfer of raw materials to production at standard usage rates, and the related quantity variance.
D. Prepare the journal entry that is needed to record the increase in work in process for the standard direct labor costs, and record the related rate and efficiency variances.
E. Prepare journal entries to apply factory overhead to production, and record the related variances

Worksheet for Part A

Materials variances:
Actual Material Cost
Actual quantity
Actual price
Actual cost of direct materials
Standard Material Cost
Output
Standard quantity of input
Standard quantity of input to achieve output
Standard price per unit of input
Standard cost of direct materials
Total materials variance
Materials price variance:
Standard price
Actual price
Actual quantity
Materials price variance
Materials quantity variance:
Standard quantity
Actual quantity
Standard price
Materials quantity variance
Labor variances:
Actual Labor Cost
Actual hours of labor
Actual rate
Actual cost of direct labor
Standard Labor Cost
Output
Standard hours per unit
Standard hours to achieve output
Standard rate per hour
Standard cost of direct labor
Total labor variance
Labor rate variance:
Standard rate
Actual rate
Actual hours
Labor efficiency variance:
Standard hours
Actual hours
Standard rate
Labor efficiency variance
Overhead variances:
Variable overhead variances
Actual hours
Actual cost of variable overhead
Actual output
Standard hours per unit
Standard hours to achieve output
Standard rate per hour
Standard cost of variable overhead
Actual use at standard cost
Total variable overhead variance
Variable overhead spending variance
Variable overhead efficiency variance
Fixed overhead variances
Actual cost of fixed overhead
Actual output
Standard hours per unit
Standard hours to achieve output
Standard rate per hour
Standard cost of fixed overhead
Budgeted fixed overhead
Total fixed overhead variance
Fixed overhead spending variance
Fixed overhead volume variance

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