P11-1A

Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours.

	Standard Unit Cost	Total Actual Costs
Direct Materials Standard (4lb. @ $2.20/lb.) Actual (38,000 lb. @ $2.00/lb.)	$8.80	$76,000
Direct Labor: Standard (2hr. @ $11.00/hr.) Actual (18,500 hr. @ $11.30/hr.)	22.00	209,050
Variable Overhead: Standard (2hr. @ $3.00/hr.) Actual	6.00	54,900
Total	$36.80	$333,950

REQUIRED

Determine the following variances and indicate whether each is favorable or unfavorable:

a. Materials price and efficiency variances

b. Labor rate and efficiency variances

c. Variable overhead spending and efficiency variances