The Glover Company produces Product A, for which the following standards have been set:

Direct materials (3 pounds @ $2.50 per pound)

Direct labor (1 hour @ $12.20 per Hour) ....cccccsssscsssecsssesessseesesssees Total factory overhead (| direct labor hour @ $7 per hour)

Standard manufacturing cost per UNit Of A...c.ccsecssesssessseessesssecssecsseessecssecsseesseensecsees

$ 7.50 12.20 7.00

$26.70 The fixed factory overhead rate was determined from the fixed factory overhead budget of $76,000 at a normal activity of 20,000 standard direct labor hours (20,000 units of Product A) per month.

Actual data recorded during April:

Units of Product A produced:......scccsecssescsessseessessseerseess 13,000 100,000 pounds @ $2.47 per pound 39,620 pounds 13,025 hours @ $12.48 per hour

$125,000 Required: (1) Compute the following:

(a) Fixed factory overhead rate per standard direct labor hour

(b) Variable factory overhead rate per standard direct labor hour

(c) Direct materials price and quantity variances

(d) Direct labor price and efficiency variances

(e) Overhead budget variance

(f) Fixed overhead volume variance

(2) Using dollars on the vertical axis and standard direct labor hours bud- geted on the horizontal axis, graph the amount of total factory overhead budgeted and total factory overhead applied as standard direct labor hours vary. Clearly show the fixed factory overhead volume variance and the overhead budget variance for April on this graph.

 TKY-1