The following information is provided to assist you in evaluating the performance of the production operations of Studio Company:

Variable overhead is applied on the basis of direct labor-hours.
Required Prepare a report that shows all variable production cost price and efficiency variances and fixed production cost price and production volume variances.

Transcribed Image Text:

Units produced (actual).. Master production budget Direct materials. Direct labor Overhead.. Standard costs per unit Direct materials.. Direct labor. Variable overhead Actual costs Direct materials purchased and used.. Direct labor Overhead.. 42,000 $264,000 224,000 318,400. . $1.65 x 4 gallons per unit of output $14 per hour x 0.4 hour per unit $11.90 per direct labor-hour $301,920 (163,200 gallons) 223,416 (17,120 hours) 326,400 (61% is variable)