Botella, Inc. produces plastic bottles. The unit for costing purposes is a case (each one holds 18 bottles). Quantity Price 0.95 Standard costs: Direct materials Direct labor Variable overhead Standard 3.8 18.75 10 1.25 1.25 8 Actual 15,000 During December, 15,000 cases were produced. During December, 78,000 pounds of material were purchased and used in production. During December, workers worked 22,500 hours. 78,000 22,500 The actual cost of the materials was $74.000. The actual wages and benefits paid to workers was $315.000 The actual cost of variable overhead was $148,000. $74,000 $315,000 $148,000 A B E F G H I J K L M N C D Actual Materials Cost ( SP x AQ ) = MPV MPV ( AQ - SQ ) x SP = MUV MUV Overall Materials Variance = 6. Von WN 600 GWN Actual Labor Cost -( SR x AH AH ) = LRV IRV ( SR AH ) -( SR x SH ) = LEV LEV Overall Labor Variance = 49 50 3. Actual VOH Cost -( SR AH ) = VOH Spending LRV CSR AH ) - ( SR x SH ) = VOH Eff LEV Overall Variable Overhead Variance = Botella, Inc. produces plastic bottles. The unit for costing purposes is a case (each one holds 18 bottles). Quantity Price 0.95 Standard costs: Direct materials Direct labor Variable overhead Standard 3.8 18.75 10 1.25 1.25 8 Actual 15,000 During December, 15,000 cases were produced. During December, 78,000 pounds of material were purchased and used in production. During December, workers worked 22,500 hours. 78,000 22,500 The actual cost of the materials was $74.000. The actual wages and benefits paid to workers was $315.000 The actual cost of variable overhead was $148,000. $74,000 $315,000 $148,000 A B E F G H I J K L M N C D Actual Materials Cost ( SP x AQ ) = MPV MPV ( AQ - SQ ) x SP = MUV MUV Overall Materials Variance = 6. Von WN 600 GWN Actual Labor Cost -( SR x AH AH ) = LRV IRV ( SR AH ) -( SR x SH ) = LEV LEV Overall Labor Variance = 49 50 3. Actual VOH Cost -( SR AH ) = VOH Spending LRV CSR AH ) - ( SR x SH ) = VOH Eff LEV Overall Variable Overhead Variance =