Question

Ralston Inc. has provided the following information. Use it to answer #1-5. Give all variances as a positive number. Round ONLY your final answer to dollars.

HINT: first correctly identify your variables as per the study guide

                                                                    

                                                                                             Per Unit

Standards:                                                                                                                                     

Direct Materials 10 lb @ $2.60/lb 26

Direct Labor 2 hours @ $22.50/hr 45

Variable Overhead 2 hours @ $18/hr 36

Fixed Overhead 25

                                                                        Total 132

Budgeted Production = 7,000 Units

Actual Results

Material Purchased 74,959 lbs $192,200

Material Used 74,600 lbs

Direct Labor 15,530 actual hours $339,500

Variable Overhead $286,600

Fixed Overhead $171,400

Units Produced 7,400 Units

1. Calculate the direct material price variance.

2. Calculate the direct material quantity variance.

3. Compute the direct labor rate variance. Round ONLY your final answer.

4. Compute the direct labor efficiency variance.

5. Calculate variable overhead rate variance. Round ONLY your final answer.  

Answer 1

The answer has been presented in the supporting sheet.