Question

WizzleCo produces bicycles. The following standard cost sheet has been developed from historical data:

Direct Materials   12 pounds             @            $ 2.00 per pound

Direct Labor         2 DLH                 @            $15.00 per DLH

Variable MOH     1 MHR                @            $10.00 per MHR

Fixed MOH          1 MHR                @            $20.00 per MHR

Production was forecast to be 2,000 units, but only 1,950 were actually produced. 26,000 pounds of materials were purchased for $66,300. A total of 23,000 pounds of materials were used in production. Actual direct labor totaled 4,000 DLH, costing $48,000. Forecast variable overhead was $10,000, and forecast fixed overhead was $40,000. Actual variable overhead was $11,000. Actual fixed overhead was $38,000. Actual machine hours totaled 1,900 MHR.

16THE ANSWER IS e11.          (5 POINTS) Calculate the direct materials price variance.       ANSWER: __________________

               

17THE ANSWER IS e11.          (5 POINTS) Calculate the direct materials usage variance.      ANSWER: ___________________

18THE ANSWER IS e11.          (5 POINTS) Calculate the direct labor efficiency variance.      ANSWER: ___________________

19THE ANSWER IS e11.          (5 POINTS) Calculate the direct labor rate variance.                 ANSWER: _________________

20THE ANSWER IS e11.          (5 POINTS) Calculate the variable overhead efficiency variance.

                                                                                                                                ANSWER: ___________________

21THE ANSWER IS e11.          (5 POINTS) Calculate the variable overhead spending (or budget) variance.

                                                                                                                                ANSWER: ___________________

Answer 1

Calculate the direct materials price variance
(Std.price-actual price)*actual units produced
(2-66300/26000)*26000
-14300	(A)
Calculate the direct materials usage variance
(Std.usage-actual usage)*Std.price
(12*2000-23000)*2
2000	(F)
Calculate the direct labor rate variance
(Std.price-actual price)*actual hours
(15-48000/4000)*4000
12000	(F)
Calculate the variable overhead efficiency variance.
(actual hours-Std.hrs)*Std.overhead rate
(1900-1950)*10
-500	(F)
Calculate the variable overhead spending
(10*1950)
19500
Calculate the direct labor efficiency variance
(actual hours-Std.hrs)*Std.labor rate
(4000-2*1950)*15
1500	(A)