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sheridan manufacturing company uses a standard cost system in accounting for the cost of its...

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Accounting

sheridan manufacturing company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit: Direct materials (2 kg at $7.50 per kilogram) $15.00 per unit and Direct labour (3 hours at $12 per hour) $36.00 per unit . Budgeted overhead for the month of april (based on expected activity of 9090 direct labour hours ) is as follows: Variable overhead $29088, Fixed overhead $19700, Total overhead is $48788. Overhead is applied based on labour hours. The average activity per month is 9850 hours. The company calculates overhead rates based on average activity. Results for the month of april are as follows: Units produced $3182, Direct materials used (6570 kg) $44676, Direct labour(9600 hours) $117504, Variable overhead $28785, Fixed Overhead $20200 Total costs $211165. There was no beginning or ending work in process inventory . Calculate the variable spending variance , variable effeciency variance, and total variable budget variance.

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