1a. Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

Budgeted variable overhead cost per direct labor-hour	$	4.00
Total budgeted fixed overhead cost per year	$	592,856
Budgeted direct labor-hours (denominator level of activity)		59,286
Actual direct labor-hours		86,000
Standard direct labor-hours allowed for the actual output		82,000

Required:

1. Compute the predetermined overhead rate for the year. Be sure to include the total budgeted fixed overhead and the total budgeted variable overhead in the numerator of your rate. (Round your answer to the nearest whole dollar amount.)

2. Compute the amount of overhead that would be applied to the output of the period. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Predetermined Overhead Rate= ________per DLH

Overhead Applied= ______________

1b.

Quality Motor Company is an auto repair shop that uses standards to control its labor time and labor cost. The standard labor cost for a motor tune-up is given below:

	Standard Hours	Standard Rate	Standard Cost
Motor tune-up	2.50	$31.00	$77.50

The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 56 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:

Labor rate variance	$	146	F
Labor spending variance	$	102	U

Required:

1. Determine the number of actual labor-hours spent on tune-ups during the week.

2. Determine the actual hourly pay rate for tune-ups last week. (Round your answer to 2 decimal places.)

1c.

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy:

Direct materials: 7 microns per toy at $0.34 per micron

Direct labor: 1.2 hours per toy at $6.70 per hour

During July, the company produced 4,800 Maze toys. The toy's production data for the month are as follows:

Direct materials: 77,000 microns were purchased at a cost of $0.32 per micron. 35,000 of these microns were still in inventory at the end of the month.

Direct labor: 6,160 direct labor-hours were worked at a cost of $44,968.

Required:

1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.)

a. The materials price and quantity variances.

b. The labor rate and efficiency variances.