1 The standard cost card for a single unit of Robinson, Inc.'s products is shown below. 2 Standard Standard Quantity Price/Rate 4 Direct materials: 2.5 yards @ $8.00 per yard 5 Direct labor: 0.5 hours @ $18.00 per hour 6 Variable overhead (based on labor hours): 0.5 hours @ $10.00 per hour 7 8 Budgeted production for the month 14,000 units 9 Actual production for the month 13,500 units Standard Unit Cost $20.00 9.00 5.00 11 Actual Costs Incurred to Produce 13,500 units: Total Actual Cost 12 Direct Materials Purchased and Used 35,100 yards @ $7.00 per yard $245,700 13 Direct Labor Paid 7,425 hours @ $17.50 per hour $129,938 14 Variable Overhead Incurred 7,425 hours @ $12.00 per hour $89,100 15 Complete the following table comparing actual costs to the flexible budget and master budget. Use formulas for 16 the spending and volume variances so that variance will appear as a negative number if unfavorable and a positive number if favorable. Spending Variances Flexible Budget Volume Variances Master Budget Direct materials: Direct labor: Variable overhead: Actual Costs $245,700 $129,938 $89,100 Using the formulas provided, compute the following variances. Write if statements to enter an For U to indicate whether the variance is favorable or unfavorable. Variance For U Direct materials: Price Variance = AQ* (SP-AP) Quantity Variance = SP * (SQ-AQ) Total Spending Variance Direct Labor Rate Variance = AH * (SR - AR) Efficiency Variance = SR* (SH - AH) Total Spending Variance Variable Overhead Rate Variance = AH * (SR - AR) Efficiency Variance = SR* (SH - AH) Total Spending Variance