Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 19,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $22,800 Direct labor 9,120 Total $31,920 The standard materials price is $0.6 per pound. The standard direct labor rate is $12 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $21,100 Actual direct labor 8,500 Total $29,600 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June, Bezco Toy Company actually produced 17,100 units during June. Determine the direct materials quantity and direct labor time variances, Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Unfavorable Direct materials quantity variance -149,900 x -13,646 Unfavorable Direct labor time variance Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). Learning Objective 3. Previous Next > Factory Overhead cost Variances Blumen Textiles Corporation began April with a budget for 36,000 hours of production in the Weaving Department. The department has a full capacity of 48,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $122,400 Fixed overhead 86,400 Total $208,800 The actual factory overhead was $211.300 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 37,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Variable factory overhead controllable variance: $ Favorable b. Fixed factory overhead volume variance: $ Unfavorable Feedback Check My Work The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced Learning Objective 4