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Chillco Corporation produces containers of frozen food. During April, Chillco produced 760 cases of food and incurred the following actual costs.
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| Variable overhead | $ | 6,400 | |
| Fixed overhead | | 21,300 | |
| Actual labor cost (5,000 direct-labor hours) | | 87,500 | |
| Actual material cost (20,000 pounds purchased and used) | | 66,000 | |
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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 (6 hours at $17 per hour) | $ | 102.00 | |
| Direct material (25 pounds at $2.90 per pound) | | 72.50 | |
| Variable overhead (6 direct-labor hours at $1.60 per hour) | | 9.60 | |
| Fixed overhead (6 direct-labor hours at $4 per hour) | | 24.00 | |
| Total | $ | 208.10 | |
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| Annual Budget Information |
| Variable overhead | $ | 96,000 | |
| Fixed overhead | $ | 240,000 | |
| Planned activity for year | | 60,000 | direct-labor hours |
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compute the following cost variances from the available data.
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| | | | | Direct-material price variance | $8,000 | Unfavorable | | Direct-material purchase price variance | $8,000 | Unfavorable | | Direct-material quantity variance | $2,900 | Unfavorable | | Direct-labor rate variance | $2,500 | Unfavorable | | Direct-labor efficiency variance | $7,480 | Unfavorable | | Variable-overhead spending variance | $1,600 | Favorable | | Variable-overhead efficiency variance | $704.00 | Unfavorable | | Fixed-overhead budget variance | $1,300 | Unfavorable | | Fixed-overhead volume variance | | Unfavorable | |
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