1.

Direct Materials and Direct Labor Variances

At the beginning of June, Kimber Toy Company budgeted 17,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:

Direct materials	$12,750
Direct labor	9,180
Total	$21,930

The standard materials price is $0.50 per pound. The standard direct labor rate is $9.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:

Actual direct materials	$12,000
Actual direct labor	8,600
Total	$20,600

There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Kimber Toy Company actually produced 15,500 units during June.

Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials quantity variance	$
Direct labor time variance	$

2.

Factory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 4,000 computers:

Actual:	Variable factory overhead	$65,000
	Fixed factory overhead	25,500
Standard:	4,000 hrs. at $21	84,000

If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $92,500, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.25 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variance	Amount	Favorable/Unfavorable
Variable factory overhead controllable variance	$	Favorable
Fixed factory overhead volume variance		Unfavorable
Total factory overhead cost variance	$	Unfavorable