16. The Fischer Corporation uses a standard costing system. The following data have been assembled for December: Actual direct labor-hours worked 5,100 hours Standard direct labor rate $8 per hour Labor efficiency variance $2,800 unfavorable The standard hours allowed for December's production is: 4,400 hours 5,450 hours 4,750 hours 5,100 hours 17. Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December: Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31 Actual Results Planning Budget Variances Customers served 28,000 27,000 Revenue (3.50q) $ 98,400 $ 94,500 $ 3,900 F Expenses: Wages and salaries ($22,700 + $1.17q) 55,460 54,290 1,170 U Supplies ($0.57q) 13,790 15,390 1,600 F Insurance ($4,600) 4,600 4,600 0 Miscellaneous expense ($3,600 + $.37q) 11,990 13,590 1,600 F Total expense 85,840 87,870 2,030 F Net operating income $ 12,560 $ 6,630 $ 5,930 F Required: 1. Prepare a report showing the companys revenue and spending variances for December. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) 18. Oddo Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 4.0 ounces $7.60 per ounce $30.40 Direct labor 0.6 hours $21.00 per hour $12.60 Variable overhead 0.6 hours $7.00 per hour $4.20 The company reported the following results concerning this product in December. Originally budgeted output 4,460 units Actual output 4,260 units Raw materials used in production 17,410 ounces Actual direct labor-hours 2,926 hours Purchases of raw materials 19,150 ounces Actual price of raw materials $7.40 per ounce Actual direct labor rate $18.90 per hour Actual variable overhead rate $7.20 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for December is: rev: 11_18_2015_QC_CS-32747, 02_18_2016_QC_CS-42551 $2,664 U $2,590 F $2,590 U $2,664 F