1. DM variances: Tell Her I Said So, Ltd. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. Inputs Direct materials Direct labore Variable manufacturing overhead- Standard Quantity or Hours per Unit of Output 4.2 grams 1.25 hourse 1.25 hours Standard Price or Rate $ 2.95 per grame $ 10.00 per hour $ 4.00 per houre The company planned to produce 10,800 units of output during June and has reported the following actual results for the product for June:- $ Actual output Raw materials purchased/usede Actual price of raw materials Actual direct labor-hours- Actual direct labor rate- Actual variable overhead rate- 11,250- Unitse 46,000-grams 3.05- per grame 16,875- Hourse 9.00- per houre 4.50- per hour ttttttt $ $ Assume all of the materials purchased was used during the month to produce the 11,250 units. Calculate: a. The DM activity variance- b. The DM spending variance C. The DM price variance- d. The DM quantity variance- 2. DM variances; part two! Lorax Ltd. makes a single product, the Thneed, and only one type of direct material is used to make this product. Lorax uses a standard costing system and has provided the following data concerning the production of Thneeds in October: Actual number of Thneeds produced- 26,000 Thneedste Materials price variance- $6,500 Favorable (F) Materials quantity variance $11,115 Unfavorable (U)-- Actual materials purchased and usede 65,000 meters le Actual price per unit of materials purchased/usede $2.75 per meter Assume there were no beginning or ending inventories of direct materials. Calculate the standard quantity of direct materials used per each unit of output for Lorax, Ltd. Round your answer to the nearest 100th of a meter (i.e. show 2 decimal places). +3. DL and VarMOH variances: Moving On Corporation makes a product with the following standard costs: Standard Quantity or Hours: Standard Price or Rate Direct materials 2 gramse $ 5.00 per gram- Direct labore 0.8 hourse $11.00 per houre Variable overheade 0.8 hourse $ 4.40 per houre The company planned to produce 42,000 units of output during August and reported the following results concerning this product in August. Actual output Raw materials used in production- Purchases of raw materials Actual direct labor-hourse Actual cost of raw materials purchases Actual direct labor cost- Actual variable overhead cost- 44,000+ units 83,600+ Grams- 83,600+ Gramse 33,000+ hourse $ 409,640- + $ 396,000- + $ 140,250- + The company applies variable overhead on the basis of direct labor-hours. a. Calculate the direct labor spending variance. b. Calculate the direct labor efficiency variance. C. Calculate the direct labor rate variance. d. Calculate the variable overhead activity variance. e. Calculate the variable overhead efficiency variance. f. Calculate the variable overhead rate variance
