Chillco Corporation produces containers of frozen food. During April, Chillco produced cases of food and incurred the following actual costs.
Variable overhead $
Fixed overhead
Actual labor cost directlabor hours
Actual material cost pounds purchased and used
Overhead is budgeted and applied using directlabor hours in a standard costing system. Standard cost and annual budget information are as follows:
Standard Costs per Case
Direct labor hours at $ per hour $
Direct material pounds at $ per pound
Variable overhead directlabor hours at $ per hour
Fixed overhead directlabor hours at $ per hour
Total $
Annual Budget Information
Variable overhead $
Fixed overhead $
Planned activity for year directlabor hours
Required:
Compute the following cost variances from the available data. Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter for no effect ie zero variance Do not round intermediate calculations.
