Records at the Farnsworth Corporation contained the following data for the most recent period of activity:
Actual total direct labor cost
Actual direct laborhours worked
Standard direct laborhours allowed for actual output flexible budget
Direct labor price variance
Actual variable overhead
Standard variable overhead rate per standard direct laborhour
$
$
$
$
Variable overhead is applied based on standard direct laborhours allowed.
Required:
Compute the labor and variable overhead price and efficiency variances.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting F for favorable, or U for unfavorable. If there is no effect, do not select either option.
tableDirect labor:,,Price variance,,EfficiVariable overhead:,,Price variance,,Efficiency variance,,
