ACC 420 - Chapter #s' 7 & 8 Practice Problem Problem 1) Fenkell Co. produces and sells a single product. The standard cost card for the product is stated below: Standard Cost Card - Per Unit Direct Materials, 4 Yards at $3.50 per Yard Direct Labour, 1.5 Direct Labour-Hrs. at $12 per Direct Labour-Hr. Variable Overhead, 1.5 Direct Labour-Hrs, at $2 per Direct Labour-Hr. Fixed Overhead, 1.5 Direct Labour-Hrs. at $6 per Direct Labour-Hr. Standard Cost Per Unit $14 18 3 9 $44 a. - The following additional information is available for the year just completed: The company manufactured 20,000 units of product during the year. b. - A total of 78,000 yards of material was purchased during the year at a cost of $3.75 per yard. All of this material was used to manufacture the 20,000 units. There were no beginning or ending inventories for the year. C. - The company worked 32,500 direct labour-hours during the year at a cost of $11.80 per hour. d. - Overhead cost is applied to products on the basis of direct labour-hours. Data related to manufacturing overhead costs follow: Denominator Activity Level (Direct Labour-Hours) 25,000 Budgeted Fixed Overhead Costs $150,000 Actual Fixed Overhead Costs $148,000 Actual Variable Overhead Costs $68,250 Required: 1) Compute the direct materials price and usage variances for the year. 2) Compute the direct labour rate and efficiency variances for the year. 3) For manufacturing overhead, compute the following: a) The variable overhead spending and efficiency variances for the year. b) The fixed overhead spending and volume variances for the year. all