AP-14B LO 4 Champlain Manufacturing has two direct cost categories: direct materials and direct labor costs. The company's variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Champlain's manufacturing costs: Direct Cost Categories Standard Quantity Direct Materials 7.5 pounds per output unit Direct Labor 0.3 hours per output unit Cost per Input Unit $11.25 per pound $22 per hour Manufacturing Overhead Cost per Input Unit $9.50 per Direct Labor Hour Variable Manufacturing Overhead By the end of May 2019 Champlain Manufacturing records indicated the following: $10.95 per pound $22.50 per hour Direct materials purchased and used Direct labor Total actual variable manufacturing overhead Actual production 92,000 pounds 4,350 labor hours $32,750 13,000 output units Part a) and b) Direct Materials Variances and Analysis Direct Materials Variance: F AQ X SP F F Actual Results/ Units Total Actual Results Price Variance Quantity Variance or U or U Total Standard Allowed Standard Allowed Unit U Units Produced Direct Materials AQ SQ Materials/Units Produced AP SP Price/Unit num Part a) and b) Direct Materials Variances and Analysis Direct Materials Variance: F AQ X SP F Actual Results/ F Total Actual Results Price Variance Quantity Variance or or or U Total Standard Allowed Standard Allowed Unit Units U U Units Produced Direct Materials AQ SQ Materials/Units Produced AP SP Price/Unit AQ DMPV AQ XSP DMQV SQ XSP Total Cost DMV Total Direct Materials Variance Provide a possible reason for the favorable or unfavorable Direct Materials Price Variance. Provide a possible reason for the favorable or unfavorable Direct Materials Quantity Variance. Provide a possible reason for the favorable or unfavorable Total Direct Materials Variance. Part c) and d) Direct Labor Variances and Analysis Direct Labor Variance: F AQ x SP Total Actual Results/ Units Total Actual Results Labor Rate Variance or F Direct Labor F or Efficiency or U Variance U Standard Allowed Standard Allowed/ Unit U Units Produced Direct Labor AQ SQ DLH/Unit AP SP DL price/unit AQ DLRV AQ SP DLEV SQ x SP Total Cost DLV Total Direct Labor Variance Provide a possible reason for the favorable or unfavorable Direct Labor Rate Variance. Parte) and f) Overhead Variances and Analysis Variable Overhead Variance: F AQ x SP F F Actual Results/ Units Total Actual Results VOH Spending Variance or or Direct Labor Efficiency Variance or Total Standard Allowed Standard Allowed/ Unit U U Units Produced Variable Manufacturing Overhead AQ SQ Units (DLH) | AP SP VOH price/DLH AQxAP VOHSV AQ x SP DLEV SQ x SP Total Cost VOHV Total Variable Overhead Variance Provide a possible reason for the favorable or unfavorable Variable Overhead Spending Variance. Provide a possible reason for the favorable or unfavorable Variable Overhead Efficiency Variance. Provide a possible reason for the favorable or unfavorable Total Direct Labor Variance
