Question
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Adamantane Inc. processes a base chemical into plastic. Standard costs and actual costs for direct
Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis
Adamantane Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 15,000 units of product were as follows:
Standard Costs | Actual Costs | ||
Direct materials | 5,000 lbs. at $50.00 | 4,950 lbs. at $50.60 | |
Direct labor | 3,000 hrs. at $25.00 | 2,945 hrs. at $25.60 | |
Factory overhead | Rates per direct labor hr., | ||
based on 100% of normal | |||
capacity of 3,200 direct | |||
labor hrs.: | |||
Variable cost, $5.50 | $16,680 variable cost | ||
Fixed cost, $4.00 | $12,800 fixed cost |
Each unit requires 0.2 hour of direct labor.
Required:
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance, b. the direct labor rate variance, direct labor time variance, and total direct labor cost variance,c. the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Everything that is filled out is correct, I am not sure about the others. please help me and fill in the rest please!!
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