Question

They allocate (apply) OH based on # of DL hours.
Following are this year's cost and standards data; assumes 52 weeks per year.
Standards (for a planned level of production of 2,100 units per month)
Direct Materials:
Yards per costume	12.00	yards
Price per yard	$           26.50	average
Direct Labor:
D.L. Hours per costume	60.00	hours
D.L. Rate per hour	$           45.00	average
Variable MOH standard rate per direct labor hour	$             4.85	per D.L. hour
Fixed MOH standard rate per direct labor hour	$           10.32	per D.L. hour
Total Budgeted Fixed MOH (for 1 month)	$    1,300,000
Actual cost and data from the current month:
Actual number of yards of materials purchased	28,000
Actual cost of materials purchased	$       800,000	$        28.57	per yd
Actual number of yards used in production	26,350
Actual number of costumes produced	2,200
Actual direct labor hours	134,500
Actual direct labor cost	$    5,112,000	$        38.01	per hr
Actual variable MOH (in total)	$       673,000
Actual fixed MOH (in total)	$    1,458,000

find the direct material variances, direct labor vairaince, variable MOH varaince, fixed MOH variance.  

Answer 1

Direct material variance = actual price-standard price) * actual quantity

= (28.57-26.50) * 26350

= 2.07 * 26350

= $54,544.5 unfavourable

Direct labour varience = (standard rate - actual rate) * actual hours

= (45-38.01) * 134500

= 6.99 * 134500

= $ 940,155 favourable

Variable MOH variance = actual MOH - (actual hours * standard rate)

= 673,000 - (134,500 * 4.85)

= 673,000 - 652,325

=$ 20,675

fixed MOH variance = Actual costs - Budgeted costs

= 1,458,000 - 1,300,000

= $158,000

thank you