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Duboise Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit
Direct materials 9.3 ounces $7.00 per ounce $65.10
Direct labor 0.3 hours $21.00 per hour $6.30
Variable overhead 0.3 hours $2.00 per hour $0.60
The company reported the following results concerning this product in October.
Originally budgeted output 1,800 units
Actual output 1,900 units
Raw materials used in production 18,800 ounces
Actual direct labor-hours 580 hours
Purchases of raw materials 20,900 ounces
Actual price of raw materials $7.20 per ounce
Actual direct labor rate $21.70 per hour
Actual variable overhead rate $1.80 per hour
The materials price variance is recognized when materials are purchased. Variable overhead is applied on the basis of direct labor-hours.
Required compute the variances below and indicate if they are favorable / unfavorable
a. Compute the materials quantity variance.
b. Compute the materials price variance.
c. Compute the labor efficiency variance.
d. Compute the labor rate variance.
e. Compute the variable overhead efficiency variance.
f. Compute the variable overhead rate variance.
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