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420201.pdf PIQUOTES Edge Profiles - Ston... . Current Bids/Esti Commercial - Docu. Models - Quart: Problem 6 15 points You have been asked as a

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420201.pdf PIQUOTES Edge Profiles - Ston... . Current Bids/Esti Commercial - Docu. Models - Quart: Problem 6 15 points You have been asked as a consultant to assist Lifetime Adventures Company in recovering from a recent computer hacking incident. The company produces a survival kit. Unfortunately, due to the computer hacking incident, only the following data from the standard cost card relating to production of a single survival kit is available as follows: Standard Quantity Standard Price Standard cost per kit Direct material $6 per yard Direct labor Variable production overhead $3 per direct labor hour Total Through interviews with company personnel, you leamed variable production overhead is applied to production on the basis of direct labor-hours. During a recent month, 1,000 survival kits were produced and sold. The only other information recovered from the company's database relating to the recent month's production and the related variance analysis is given below. Variance Analysis Materials Direct Variable Production Used Labor Overhead Standard Cost for 1,000 kits $16,800 $10,500 $4,200 Actual costs incurred $15,000 $3,600 a. Materials Price Variance Materials Quantity Variance $1,200 U b. Labor Rate Variance c. Labor Efficiency Variance d. Variable Overhead Rate Varianto e. Variable Overhead Efficiency Variance Further interviews with company personnel revealed the following for the recent month's production Actual Direct Labor Hours Worked: 1,500: Standard variable overhead rate per direct labor hour $3.00 Difference between the standard and actual cost per kit during the recent month: 5.15 Favorable. The corripany had no beginning or ending inventories of materials Required: Determine the variances shown in bold in the table above. Show all your work and calculation

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