1.

Use the information provided to create a standard cost card for production of one glove box switch. To make one switch it takes 16 feet of plastic-coated copper wire and 0.5 pounds of plastic material. The plastic material can usually be purchased for $19.00 per pound, and the wire costs $2.40 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.5 hours. These workers are paid $27.00 per hour. The second type of labor is finishing, which takes 1 hours. These workers are paid $29.00 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.80 per labor hour. The fixed overhead rate is $15.60 per hour. Round your answer to two decimal places.

Standard Cost

$

2

Thing One Company has the following information available for the past year. They use machine hours to allocate overhead.

Actual total overhead	$75,540
Actual fixed overhead	$32,500
Actual machine hours	10,000
Standard hours for the units produced	9,400
Standard variable overhead rate	$4.60

What is the variable overhead efficiency variance? Enter the amount as positive number.

Variable overhead efficiency variance

$

Favorable

3.

A manufacturer planned to use $76 of variable overhead per unit produced, but in the most recent period, it actually used $72 of variable overhead per unit produced. During this same period, the company planned to produce 400 units but actually produced 450 units.

What is the variable overhead spending variance? Enter the amount as positive number.

Variable overhead spending variance

$

Favorable

4

Actual price paid for material	$1.00
Standard price for material	$0.80
Actual quantity purchased and used in production	90
Standard quantity for units produced	110
Actual labor rate per hour	$16
Standard labor rate per hour	$14
Actual hours	200
Standard hours for units produced	230

A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers.

Material price variance	$	Unfavorable
Material quantity variance	$	Favorable
Labor rate variance	$	Unfavorable
Labor efficiency variance	$	Favorable

B. What are some possible causes for this combination of favorable and unfavorable variances?

We paid more for our raw material, and assembly cost more per hour than expected.