= The Hammond Manufacturing Company produces Yagis. Standard costs per Yagi are as follows:

Standard Cost per Yagi Direct materials:
Aluminum tubing (144 feet @ $0.40 per foot) ..cccccscsssssscsscsssseessssnneesssen $ 57.60 Hardware (1 package @ $5.00 per package) .....csssssssssssssessesssneeeeen a 5.00 Direct labor (3 direct labor hours @ $9.60 per hour) 28.80 Factory overhead:
Variable (3 direct labor hours @ $2.00 per HOUL)...sssssssssssssssssssseesseeesssees 6.00 Fixed (3 direct labor hours @ $4.00 per Hour) ..ssscssssssessssssssessssssseeeeseens 12.00 Standard manufacturing cost per Yagi .....cssssecsssssssssccsssseeccsssssseessenneees $109.40 Factory overhead is budgeted and applied on the basis of standard direct labor hours.
The overhead rates were set at a practical capacity of 5,600 standard direct labor hours per year.

Yagis produced: 1,350 Aluminum tubing purchased (on credit): 280,000 feet @ $0.41 per foot = $114,800 Aluminum tubing used: 196,400 feet Hardware purchased (on credit): 1,360 packages @ $4.95 per package = $6,732 Packages of hardware used: 1,360 packages Direct labor cost: 4,120 direct labor hours @ $9.70 per hour = $39,964 Total factory overhead cost: $32,050 (assume all was paid in cash except for depreciation of $4,500 on equipment)
Required: (1) Calculate the direct materials price and quantity variances for each direct material.
2) Calculate the direct labor price and efficiency variances.
3) Calculate the overhead budget variance.
4) Calculate the fixed overhead volume variance.
5) Using T-accounts, prepare the entries to record

(a) the purchase and use of the raw materials,

(b) the wages incurred for direct labor,

(c) the factory overhead incurred and applied, and

(d) the overhead budget variance and the fixed overhead volume variance.

 TKY-1