Activity Standard Rate Standard Quantity per Unit Actual Produced Costs Actual Quantity Indirect $5 per yard 14 yards per unit $4,850,000 990,000 yards materials Product testing $3 per test minute 10 minutes per unit $2,000,000 650,000 test minutes Indirect labor $9 per direct labor 6 hours per unit $3,800,000 410,000 direct labor hour hours Required: 1. Assume Spindle Company produced 70,000 units last quarter. Prepare a variance analysis using the format shown in Figure 4.11 "Variable Overhead Variance Analysis for Jerry's Ice Cream Using Activity-Based Costing". Clearly label each variance as favorable or unfavorable. 2. Company policy is to investigate all variances above 5 percent of the flexible budget amount for each activity. Identify the variances that should be investigated according to company policy. Show calculations to support your answer. One Step Further: Skill-Building Cases External Resource Type here to search O 820 F ~ 0 9 0 B