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	Materials Variance Information Table Standard price per pound Actual price per pound Standard quantity for flexible budget pounds Actual quantity used pounds

	Labor Variance Information Table Standard price per hour Actual price per hour Standard hours for flexible budget Actual hours used

	Material price variance Material usage variance

	Labor price variance Labor usage variance

	e. Predetermined overhead rate per unit f. Fixed cost spending variance g. Fixed cost volume variance

Problem 8-23A Computing materials, labor, and cost variances LO 8-5, 8-6 The following data were drawn from the records of Munoz Corporation Planned volume for year (static budget) Standard direct materials cost per unit Standard direct labor cost per unit Total expected fixed overhead costs Actual volume for the year (flexible budget) Actual direct materials cost per unit Actual direct labor cost per unit Total actual fixed overhead costs 4,400 units 4.00 pounds $1.90 per pound 3.50 hours 8 $3.90 per hour $23,320 4,700 units 3.70 pounds $2.40 per pound 3.90 hours 8 $3.50 per hour $19,020 Required a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity b. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U) c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours d. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U) e. Calculate the predetermined overhead rate, assuming that Munoz uses the number of units as the allocation base f. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U) g. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U)

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