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Direct Materials, 2 feet at $8.45 per foot...$16.90

Direct Labor, 1.4 direct labor hours at $16 per direct labor hour..................22.40

Variable over head. 1.4 direct labor hours at $2.50 per direct labor hour.......3.50

Fixed over head, 1.4 direct labor hours at $6 per direct labor hour...8.40

Standard Cost per UnitTotal..$51.20

Company manufactured 30,000 units during year.

Total of 64,000 feet of material was purchased during the year at $8.55 per foot.

Company worked 43,500 direct labor hours, during the year at direct labor cost of $15.80 per hour.

Denominator Activity level( direct labor hours) ..35,000

Budgeted fixed over head cost$210,000

Actual variable over head cost incurred.$108,000

Actual fixed over head cost incurred$211,800

Questions :

1. Direct materials price and quantity variances:

Materials price variance = AQ (AP SP)

xx,000 feet ($x.xx per foot $8.45 per foot) = $x,x00 U

Materials quantity variance = SP (AQ SQ)

$x.xx per foot (xx,000 feet xx,000 feet*) = $xx,x00 U

Tip *30,000 units 2 feet per unit = ?? feet

2. Direct labor rate and efficiency variances:

Labor rate variance = AH (AR SR)

xx,x00 DLHs ($15.80 per DLH $xx.00 per DLH) = $x,x00 F

Labor efficiency variance = SR (AH SH)

$xx.00 per DLH (xx,500 DLHs xx,000 DLHs*) = $xx,000 U

Tip; *30,000 units 1.4 DLHs per unit = xx,000 DLHs

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