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COB Candy Products Corporation manufactures gourmet candies. The cost standards developed by COB appear below. Manufacturing overhead at COB is applied to production on the

COB Candy Products Corporation manufactures gourmet candies. The cost standards developed by COB appear below. Manufacturing overhead at COB is applied to production on the basis of standard direct labor hours:

Standard quantity per unit of product Standard cost per kilogram or hour Standard cost per unit of product
Direct materials 0.75 kilogram 350.00 262.50
Direct labor 1.4 hours 65.00 78.00
Variable overhead 1.4 hours 16.25 19.50

The standards were based on an expected annual volume of 75,000 products.

The actual results for last year were as follows:

Number of candy products produced 31,500
Kilograms of direct materials purchased 23,600
Kilograms of direct materials used in production 23,575
Direct labor-hours incurred 44,000
Direct labor cost per hour 65.25
Variable overhead cost per hour 16.00
Total cost of direct materials purchased 8,272,750

1. The materials quantity or usage variance amounts to ____________________.

2. The variable overhead spending variance amounts to ____________________.

3. The materials spending variance amounts to ____________________. 4. The labor rate variance amounts to ____________________.

5. The labor spending amounts to ____________________.

6. The raw materials inventory at standard cost amounts to __________________.

7. The variable overhead efficiency variance amounts to ____________________.

8. The variable overhead rate variance amounts to ____________________.

Indicate in your solution sheet whether it is FAVORABLE or UNFAVORABLE

For uniformity of answers, if the variance is FAVORABLE encode a minus sign before the numerical answer. Do not place spaces.

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