Material, Labor, and Variable OverheadVariances The following summarized manufacturing datarelate to Kiosse Corporation’s May operations, during which 2,000finished units of product were produced. Normal monthly capacity is1,100 direct labor hours.
| Standard Units Costs | | Total Actual Costs |
|---|
| Direct material | | | | | | |
| Standard (3 lb. @ $2.00/lb.) | | | $6 | | |
| Actual (6,200 lb. @ $2.20/lb.) | | | | | $13,640 |
| Direct labor | | | | | | |
| Standard (0.5 hr. @ $14/hr.) | | | $7 | | |
| Actual (980 hrs. @ $13.70/hr.) | | | | | 13,426 |
| Variable overhead | | | | | | |
| Standard (0.5 hr. @ $4/hr.) | | | $2 | | |
| Actual | | | - | 4,200 |
| Total | | | $15 | $31,266 |
Assume that the 6,200 lb. of materials purchased were all usedin producing the 2,000 completed units. Determine the materialsprice and efficiency variances, labor rate and efficiencyvariances, and variable overhead spending and efficiencyvariances.
Do not use negative signs with any of your answers. Next to eachvariance answer, select either "F" for Favorable or "U" forUnfavorable.
| Materials Variances |
|---|
| Actual cost: | Answer | |
| Split cost: | Answer | |
| Standard cost: | Answer | |
| Materials price | Answer | AnswerFU |
| Materials efficiency | Answer | AnswerFU |
| Labor Variances |
|---|
| Actual cost: | Answer | |
| Split cost: | Answer | |
| Standard cost: | Answer | |
| Labor rate | Answer | AnswerFU |
| Labor efficiency | Answer | AnswerFU |
| Variable Overhead Variances |
|---|
| Actual cost: | Answer | |
| Split cost: | Answer | |
| Standard cost: | Answer | |
| Variable overhead spending | Answer | AnswerFU |
| Variable overhead efficiency | Answer | AnswerFU |
