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Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labor. In 2011, AVO estimated the following standard costs for one of

Apple Valley Orchards, Inc. (AVO), developed standard costs for direct material and direct labor. In 2011, AVO estimated the following standard costs for one of their most well loved products, the AVO classic Grandma's large apple pie which had a brown sugar coating on the top of the crust as well as including cranberry and mince ingredients in addition to the apples.

Budgeted quantity Budgeted price

Direct materials 1.5 pounds $7.25 per pound

Direct labor 0.25 hours $14.00 per hour

During September, AVO produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00 and 280 direct labor hours at an average wage of $14.25 per hour.

Circle F for favorable and U for unfavorable

1) September's direct material flexible-budget variance is: $______________ F or U

2) September's direct material price variance is: $______________F or U

3) September's direct material efficiency variance is: $______________F or U

4) September's direct labor flexible-budget variance is: $______________F or U

5) September's direct labor price variance is: $______________F or U

6) September's direct labor efficiency variance is: $______________F or U

Use the following information for questions 7-10

Wilson's Winter Woolens manufactures jackets and other wool clothing. A certain designed ski parka requires the following:

Direct materials standard 2 square yards at $13.50 per yard

Direct manufacturing labor standard 1.5 hours at $20.00 per hour

During the third quarter, the company made 1,500 parkas and used 3,150 square yards of fabric costing $39,375. Direct labor totaled 2,100 hours for $45,150.

Required:

The direct materials price and efficiency variances for the quarter is

7. Price $ ________________________________ F or U

8. Efficiency $________________________________ F or U

The direct manufacturing labor price and efficiency variances for the quarter.

9. Price $ ________________________________F or U

10. Efficiency $________________________________F or U

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