12. Bonchi Company produced 8,000 units this month, which it sold for $162,000, and incurred the following costs

Bonchi budgeted to produce and sell 7,800 units this month for $20 per unit. Standards call for 1 pound of direct materials and 1 hour of direct labor per unit, costing $5 per pound of direct materials and $8 per hour of direct labor. Variable manufacturing overhead is applied at a rate of $4 per direct labor hour, and fixed manufacturing overhead was budgeted at $10,000.
Calculate all nine variances and indicate whether they are favorable or unfavorable

Transcribed Image Text:

Direct materials Variable overhead Direct labor Fixed costs $40,000 (for 10,000 pounds) $22,000 $60,000 (for 8,000 hours) $15,000