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PA9-5 CalculatingDirect Materials, Direct Labor, Variable Manufacturing OverheadVariances [LO 9-3, 9-4, 9-5]

Bullseye Companymanufactures dartboards. Its standard cost informationfollows:

	Standard Quantity		Standard Price (Rate)			Standard Unit Cost
Direct materials(cork board)	2.5	sq. ft.	$	2.00	per sq. ft.	$	5.00
Directlabor	1	hrs.	$	14.00	per hr.		14.00
Variablemanufacturing overhead (based on direct labor hours)	1	hrs.	$	0.50	per hr.		0.50
Fixedmanufacturing overhead ($40,000 ÷ 160,000 units)							0.25

Bullseye has the following actual results for the month ofSeptember:

Number of unitsproduced and sold		140,000
Number of squarefeet of corkboard used		360,000
Cost ofcorkboard used	$	756,000
Number of laborhours worked		148,000
Direct laborcost	$	1,938,800
Variableoverhead cost	$	72,000
Fixed overheadcost	$	50,000

Required:
1. Calculate the direct materials price, quantity,and total spending variances for Bullseye. (Do not roundyour intermediate calculations. Indicate the effect of eachvariance by selecting "F" for favorable, "U" forunfavorable.)

    

2. Calculate the direct labor rate, efficiency,and total spending variances for Bullseye. (Do not roundyour intermediate calculations. Indicate the effect of eachvariance by selecting "F" for favorable, "U" forunfavorable.)

    

3. Calculate the variable overhead rate,efficiency, and total spending variances for Bullseye. (Donot round your intermediate calculations. Indicate the effect ofeach variance by selecting "F" for favorable/Overapplied and "U"for unfavorable/underapplied.)