ADO Standard Cost and Flexible Budget. Hal's Heating produces furnaces for commercial buildings. The company's master budget shows the following standards information. Hal's Heating produced 320 furnaces during January. Expected production for January Direct materials Direct labor 300 furnaces 3 heating elements at $40 per element 35 hours per furnace at $18 per hour 35 direct labor hours per furnace at $15 per hour Variable manufacturing overhead Calculate: Standard cost per unit for direct Flexible budget amount for direct Standard cost per unit for direct Flexible budget amount for direct Standard cost per unit for variable Flexible budget amount for 120 38,400 630 201,600 525 168,000 During January, Hal's Heating purchased 1,000 heating elements for $38,000 and used 980 heating eler A total of 10,000 direct labor hours were worked during January, at a cost of $190,000. Variable overhead costs totaled $190,000 for the month of January. 4 ... 10-21 22 23 2410-77 10 2970 6 7 A Standard cost per unit for variable Flexible budget amount for DEF 525 168,000 19 During January, Hal's Heating purchased 1,000 heating elements for $38,000 and used 980 heating elements 20 A total of 10,000 direct labor hours were worked during January, at a cost of $190,000. 21 Variable overhead costs totaled $190,000 for the month of January. 22 The company applies fixed manufacturing overhead costs to products based on direct labor hours. Budgeted Fixed OH Costs 231,000 Budgets Direct Labor Hours 10,500 Std cost per DLH Actual fixed overhead costs 217,000 22 28 Calculate: 29 Calculate the materials price variance and materials quantity variance 30 Calculate the labor rate variance and labor efficiency variance 31 Calculate the variable overhead spending variance and variable overhead efficiency variance 32 Calculate the fixed overhead spending variance and production volume variance 33 Prepare Journal Entiries to record: 34 The purchase of raw materials for the month 35 To record the usage of raw materials in production for the month (the flexible budget shows the company 36 Direct labor costs for the month (The flexible budget shows the company expected to use 11,200 direct labor 37 ... 10-21 22 23 24 10-27 17: X for C 18.00 VOH 630.00 35.00 15.00 D 19.00 $ per Hr 10,000 Hr worked $ per Unit Hr per unit $ per Hr 10,000 Hr worked 190,000 Cost OH $ per Unit 320 525.00 Units Prod Units Sold FOH 231,000 10,500 22.00 Budget cost Budget DLH Per hour 320 Actual Prod 217,000 Actual Cost $ per Unit 1021 22 23 240-270 29 30 31 32 3330-36 Quiz riance = Actual Quantity Purchased (Actual Price Standard Price ) Variance = Standard Price x ( Actual Quantity Used - Standard Quantity ) iance Actual Hours Used (Actual Rate Standard Rate) I ariance Standard Rate X (Actual Hours Standard Hours)