and 30. Direct Labor and Overhead Budgets LO4 d partly Ash Company manufactures telephone handsets place under various brand names. The company has built as a strong reputation based on quality telephones and has been profitable for a number of years. Harriman Units Lassiter, the company's president, has decided to 22, 100 make a significant push for labor and overhead cost controls in the coming months because of increased 24,300 overseas competition. Harriman has asked the mar- 6,200 keting and accounting departments to provide data 7,000 related to labor costs and manufacturing overhead. Production budgets for the period ending June 30 at are as follows: ds Units Month Units be Month January 25,000 April 28,500 February 27,000 May 31,400 March 32,000 June 34,500 Each telephone requires 2.5 hours of direct labor for assembly and testing. The company currently applies manufacturing overhead to production at the rate of ugh $7 per direct labor hour. Required A. Prepare a direct labor budget for January through June. Direct labor averages $15 per hour. B. Prepare a manufacturing overhead budget for the same period. 31. Direct Labor and Overhead Budgets LO4 Babcock Builders is a well-regarded construction company that serves as a general contractor for both resideRequired A. Calculate the direct B. Calculate the direct material 12. Labor Rate and Efficiency Variances LOO Refer to the information in Exercise 11. Required A. Calculate the direct labor rate variance. B. Calculate the direct labor efficiency variance. 13. Materials and Labor Variances LO5, 6 Last year, Vera Corporation budgeted for production and sales of 20,000 cloth handbags. Vera produced and sold 19,250 handbags. Each handbag has a standard requiring 4 feet of mate- rial at a budgeted cost of $2.50 per foot and 45 minutes of sewing time at a cost of $0.28 per minute. The handbags sell for $45.00. Actual costs for the production of 18,000 handbags were $201,600 for materials (80,000 feet at $2.52 per foot) and $260,400 for labor (868,000 minutes at $0.30 per minute). Required A. What is the handbag's direct material price variance? variance? B. What is the handbag's direct material usage C. What is the handbag's direct labor rate variance? variance? D. What is the handbag's direct labor efficiency 226