The standards for one case of liquid weed killer are as follows:
Direct materials
Direct labor
Variable overhead based on
machine hours
pound @ $ per pound
hour@$ per hour
hour@$ per hour
During the week ended May the following activity took place:
machine hours were worked.
pound of raw material were purchased for inventory at a total cost of $
cases of finished product were produced.
pound of raw material were used.
labor hours were worked at an average rate of $ per hour.
$ actual variable overhead costs were incurred.
Required:
Calculate each of the following variances.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting F for favorable, U for
unfavorable, and "None" for no effect ie zero variance
a Price variance for raw materials purchased.
b Raw materials usage variance.
c Direct labor rate variance.
