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Part C-August Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the beginning of the month. Actual data for August were as follows: Actual Direct Materials Actual Direct Materials Price per Unit Quantity per Case Cream base $0.016 per oz. 102 ozs. Natural oils $0.32 per oz. 31 Ozs. Bottle (8-oz.) $0.42 per bottle 12.5 bottles Actual Direct Labor Actual Direct Labor Time per Case Rate $18.20 19.50 min Mixing Filling 14.00 5.60 min. $305.00 Actual variable overhead Normal volume 1,600 cases The prices of the materials were different than standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard. 12. Determine the factory overhead controllable variance. Actual variable overhead Variable overhead at standard cost Factory overhead controllable variance Indicate if favorable or unfavorable 13. Determine the factory overhead volume variance. Round rate to four decimal places and round your final answer to two decimal places. Normal volume (cases) Actual volume (cases) Difference Fixed factory overhead rate Factory overhead volume variance Indicate if favorable or unfavorable 14. The production volume of cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of for the month. Thus, the standard cost must be based on the units of actual production

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