(9.9)

Rip Tide Company manufactures surfboards. Its standard cost information follows:

Standard Standard Unit Cost Standard Price (Rate) Quantity 15 sq. ft 10 hrs S 75.00 Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,000 300 units) $5 per sq. ft $15 per hr 6 per hr 150.00 10 hrs. 60,00 80.0 Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass used Cost of fiberglass used Number of labor hours worked Direct labor cost Variable overhead cost 312 4,920 $27,552 3,060 $47.736 $14,790 $20,000 Fixed overhead cost Required: 1. Calculate the direct materials price, quantity, and total spending variances for Rip Tide. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Answer is complete but not entirely correct. 3,493 U Direct Materials Price Variance Direct Materials Quantity Variance Direct Materials Spending Variance 850 xU 3.380 U 2. Calculate the direct labor rate, efficiency, and total spending variances for Rip Tide. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Answer is complete but not entirely correct Direct Labor Rate Variance 4,464 (xU Direct Labor Efficiency Variance 900 F Direct Labor Spending Variance S 1,340 U