Question
Delta Appliances Inc. produces refrigerators. The standard direct material cost per unit is SAR 200, standard direct labor cost per unit is SAR 100, and
Delta Appliances Inc. produces refrigerators. The standard direct material cost per unit is SAR 200, standard direct labor cost per unit is SAR 100, and standard variable overhead cost per unit is SAR 50. In June 2024, the company produced 1,000 refrigerators and incurred actual direct material costs of SAR 210,000, actual direct labor costs of SAR 105,000, and actual variable overhead costs of SAR 52,000. Calculate the direct material cost variance, direct labor cost variance, and variable overhead cost variance for June 2024.
Requirements:
- Calculate the direct material cost variance.
- Determine the direct labor cost variance.
- Compute the variable overhead cost variance.
- Prepare a variance analysis report for June 2024.
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