2 "Wonderfull Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well," said Kim Clark, president of Martell Company Our $28.700 overall manufacturing cost variance is only 20% of the $1.435.000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year." The company produces and sells a single product. The standard cost card for the product follows: eBook (1) Standard Quantity or Hours 3.00 feet 1.2 hours 1.2 hours 1.2 hours Inputs Direct waterials Direct labor Variable overhead Fixed overhead Totol standard cost per unit Standard Price ar late $ 3.00 per foot 11 per hour $ 2.00 per hour 55.50 per hour Standard Cost (2) $9.00 13.20 2.40 GO 01.20 Print Bo References The following additional information is available for the year just completed a. The company manufactured 25,000 units of product during the year b. A total of 74,000 feet of material was purchased during the year at a cost of $3 20 per foot All of this material was used to manufacture the 25,000 units produced. There were no beginning or ending inventories for the year c. The company worked 33,000 direct labor-hours during the year at a direct labor cost of $10.70 per hout d. Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead costs follow Denominator activity level (direct labor-hours) Budgeted fixed overhead costs Actual variable overheid costs incurred Actual fixed overhead costs incurred 20.000 $ 143,000 572,600 $ 140,200 Required: 1. Compute the materials price and quantity variances for the year. 2. Compute the labor rate and efficiency variances for the year 3. For manufacturing overhead compute: a The variable overhead rate and efficiency variances for the year b. The fixed overhead budget and volume variances for the year (For all requirements, indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effectie., zero variance). Input all amounts as positive values.) Nud Denominator activity level (direct labor-hours) Budgeted fixed overhead costs Actual variable overhead costs incurred Actual fixed overhead costs incurred 26,000 $ 143,000 $ 72,600 $ 140,288 Required: 1. Compute the materials price and quantity variances for the year. 2. Compute the labor rate and efficiency variances for the year, 3. For manufacturing overhead compute: a. The variable overhead rate and efficiency variances for the year, b. The fixed overhead budget and volume variances for the year. (For all requirements, 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.) 1 Materials price variance Materials quantity variance 12 Labor rale variance Labor efficiency variance 30. Variable overhead rate variance Variable overhead efficiency variance 3b Food overhead budget variance Fixed overhead volume variance