Data Table (213,000 parts @ $0.22 per part) (1,660 hours @ $7.10 per hour)

Direct Materials	2 parts
Direct Labor	0.02 hours
Variable Manufacturing Overhead	0.02 hours
Fixed Manufacturing Overhead ($33,320 for static budget volume
of 98,000 units and 1,960 hours, or $17 per hour)
Actual Cost Information
Direct Materials	46,860
Direct Labor	11,786
Variable Manufacturing Overhead	10,000
Fixed Manufacturing Overhead	31,000

Smart hearing manufactures headphone cases. During September 2018, the company produced and sold 108,000 cases and recorded the following cost data:

Requirement 1. Compute the cost and efficiency variances for direct materials and direct labor.

Formula Variance

Direct materials cost variance = (AC - SC) x AQ = $10,650 U

Direct labor cost variance = (AC- SC) x AQ =$ 166 U

Next compute the efficiency variances. Select the required formulas, compute the efficiency variances for direct materials and direct labor, and identify whether each variances is favorable (F) or unfavorable (U).

Direct materials efficiency variance = (AQ - SQ) x SC = $ 510 F

Direct labor efficiency variance = (AQ - SQ) x SC = $ 3,500 F

Now compute the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable (F) or unfavorable (U).

Formula Variance

VOH cost variance = ______a.______ = ____I.________ __b.__

VOH efficiency variance = _______c.______ = ____II._________ __d.__

Solve letters a,b,c,d. And solve the variance blanks (I. and II.)

** a. Choices formulas to select for a are :(AC-SC) x AQ, (AC-SC) x SQ, (AQ-SQ) x AC, (AQ-SQ) x SC, Actual FOH - Allocated FOH, Actual FOH - Budgeted FOH, or Budgeted FOH - Allocated FOH.

b. Choices for b. are favorable (F) or unfavorable (U).

c. Choices for c. are (AC-SC) x AQ, (AC-SC) x SQ, (AQ-SQ) x AC, (AQ-SQ) x SC, Actual FOH - Allocated FOH, Actual FOH - Allocated FOH, Actual FOH - Budgeted FOH, or Budgeted FOH - Allocated FOH.

d. Choices for d. are favorable (F) or unfavorable (U).

** Variances I. and II. must be solved.

Date de ng S Standard Cost Information Cost Quantity 2 parts Direct Materials $0.17 per part Janand Direct Labor 0.02 hours 7.00 per hour formula SC = favorable (1) or unf per hour Variable Manufacturing Overhead 0.02 hours 10 Fixed Manufacturing Overhead ($33,320 for static budget volume of 98,000 units and 1,960 hours, or $17 per hour) Fo ( ( Actual Cost Information Direct Materials the require fixed ove Direct Labor (213,000 parts @ $0.22 per part) (1,660 hours @ $7.10 per hour) ach variance is favora Variable Manufacturing Overhead Fixed Manufacturing Overhead $ 46,860 11,786 10.000 31.000 the pus Print Done