Question
Chillco Corporation produces containers of frozen food. During April, Chillco produced 755 cases of food and incurred the following actual costs. Variable overhead $ 6,300
Chillco Corporation produces containers of frozen food. During April, Chillco produced 755 cases of food and incurred the following actual costs. Variable overhead $ 6,300 Fixed overhead 12,800 Actual labor cost (4,500 direct-labor hours) 76,050 Actual material cost (16,000 pounds purchased and used) 51,200 Overhead is budgeted and applied using direct-labor hours in a standard costing system. Standard cost and annual budget information are as follows: Standard Costs per Case Direct labor (5 hours at $16 per hour) $ 80.00 Direct material (20 pounds at $2.80 per pound) 56.00 Variable overhead (5 direct-labor hours at $1.90 per hour) 9.50 Fixed overhead (5 direct-labor hours at $3 per hour) 15.00 Total $ 160.50 Annual Budget Information Variable overhead $ 95,000 Fixed overhead $ 150,000 Planned activity for year 50,000 direct-labor hours Required: Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Do not round intermediate calculations.)
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