1. Acme Companys production budget for August is 18,600 units and includes the following component unit costs: direct materials, $8.00; direct labor, $11.50; variable overhead, $5.00. Budgeted fixed overhead is $43,000. Actual production in August was 19,998 units. Actual unit component costs incurred during August include direct materials, $10.00; direct labor, $10.50; variable overhead, $6.00. Actual fixed overhead was $45,600. The standard direct material cost per unit consists of 8 pounds of raw material at $1 per pound. During August, 249,975 pounds of raw material were used that were purchased at $0.80 per pound.

Required:

Calculate the materials price variance and materials usage variance for August. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

2. Acme Companys production budget for August is 18,400 units and includes the following component unit costs: direct materials, $8.00; direct labor, $10.50; variable overhead, $6.00. Budgeted fixed overhead is $41,000. Actual production in August was 20,076 units. Actual unit component costs incurred during August include direct materials, $9.00; direct labor, $10.00; variable overhead, $8.50. Actual fixed overhead was $43,400. The standard direct labor cost per unit consists of 0.5 hour of labor time at $21 per hour. During August, $200,760 of actual labor cost was incurred for 8,400 direct labor hours.

Required:

Calculate the labor rate variance and labor efficiency variance for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

3. a. Acme Companys production budget for August is 19,400 units and includes the following component unit costs: direct materials, $10.0; direct labor, $12.5; variable overhead, $6.0. Budgeted fixed overhead is $51,000. Actual production in August was 20,928 units. Actual unit component costs incurred during August include direct materials, $10.50; direct labor, $12.00; variable overhead, $6.50. Actual fixed overhead was $54,400. The standard variable overhead rate per unit consists of $6.0 per machine hour and each unit is allowed a standard of 1 hour of machine time. During August, $136,032 of actual variable overhead cost was incurred for 21,255 machine hours.

Required:

Calculate the variable overhead spending variance and the variable overhead efficiency variance. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

b. Acme Companys production budget for August is 17,900 units and includes the following component unit costs: direct materials, $8.0; direct labor, $10.4; variable overhead, $6. Budgeted fixed overhead is $36,000. Actual production in August was 18,135 units. Actual unit component costs incurred during August include direct materials, $8.60; direct labor, $9.80; variable overhead, $7.20. Actual fixed overhead was $37,900. The standard fixed overhead application rate per unit consists of $2.4 per machine hour and each unit is allowed a standard of 1 hour of machine time.

Required:

Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)