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Silicon Inc. has provided the following information for the year ended December 31, Year 1.
| | Master Budget | | Actual Costs |
| | 5,000 units | | 4,500 units |
| Direct materials | $ | 35,000 | | | $ | 32,500 | |
| Direct labor | | 15,000 | | | | 12,500 | |
| Variable manufacturing overhead | | 8,000 | | | | 7,800 | |
| Fixed manufacturing overhead | | 16,000 | | | | 17,500 | |
| Total manufacturing cost | $ | 74,000 | | | $ | 70,300 | |
| |
Knowledge Check 01
What is the direct materials spending variance?
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$1,000 favorable
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$1,000 unfavorable
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$3,500 favorable
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$3,500 unfavorable
Knowledge Check 02
What is the direct labor volume variance?
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$2,500 favorable
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$2,500 unfavorable
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$1,500 favorable
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$1,500 unfavorable
Knowledge Check 03
What is the total variable manufacturing overhead variance?
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$200 favorable
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$200 unfavorable
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$800 favorable
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$800 unfavorable
Knowledge Check 04
What is the fixed manufacturing overhead volume variance?
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$1,600 favorable
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$3,100 unfavorable
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$150 unfavorable
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$0
Answer & Explanation
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