2. Vega Company has developed the following standard costs for its product for 2011: VEGA COMPANY Standard Cost Card Cost Element Direct materials Direct labor 4 pounds 3 hours Manufacturing overhead 3 hours Standard Quantity x Standard Price $3 = Standard Cost $12 8 24 4 12 $48 Product A The company expected to produce 25,000 units of Product A in 2011 and work 75,000 direct labor hours. Actual results for 2011 are as follows: . 26,000 units of Product A were produced. Actual direct labor costs were $630,800 for 76,000 direct labor hours worked. . Actual direct materials purchased and used during the year cost $283,500 for 105,000 pounds. . Actual variable overhead incurred was $130,000 and actual fixed overhead incurred was $170,000. Instructions Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable or unfavorable. (a) Total Materials variance. 60 43 3 X2 54 4 L W Focus F7 FB 169 F9 F10 F11 % 75 F6 ' 6 & 27 8 ( 6 0 Instructions Compute the following variances showing all computations to support your answers. Indicate ether the variances are favorable or unfavorable. (a) Total Materials variance. (b) Materials price variance. earch (c) Materials quantity variance. (d) Total direct labor variance. (e) Direct labor quantity variance. #3 3 X1 e C D L W Foc BREATHIN FB F9 F10 F11 % FB > 6 & 28 7 95 54 8 9 t Draw Design Layout References Mailings Review View Help A A A A A-2 A- 24 AaBbCct AaBbCct AuBbCct AaBbC. Ao E Heading 5 1 Normal No Spac. Heading 1 He Font Paragraph D Most of the features of Word have been disabled Reactivate (b) Materials price variance. (c) Materials quantity variance. search (d) Total direct labor variance. (e) Direct labor quantity variance. (f) Direct labor rate variance. #2 X2 Styles C F5 + F6 L FB F9 910