Direct materials Iron Copper Direct labor 5 sheets $2.00-$10.00 3 spools $3.009.00 4 hours @$7.00 28.00 Variable overhead 4 hours $3.00 12.00 4 hours $2.00 8.00 Fixed overhead Total 567.00 Overhead rates were based on normal and expected monthly labor hours for 19x7, both of which were 4,000 direct labor hours Practical capacity for this department is 5,000 direct labor hours per month. Variable overhead costs are expected to vary with the number of direct labor hoursactually used During October 19X7, 800 transformers were produced. This was below expectations because a work stoppage occurred during contract negotiations with the labor force. Once the contract was settled, the department scheduled overtime in an attempt to catch up to expected production levels Actual costs incurred in October 19X7 were as follows: Direct materials: Purchased Used 000 sheets$2.00 per sheet 3900 sheets 2,200 spools $3.10 Iron 2.600 spools Copper Regular time Overtime Direct labor 2,000 hours @ $7.00 1.400 hours$7.20 600 of the 1,400 hours were subject to overtime premium. The total overtime premium of $2.160 is included in variable overhead in accordance with corporate accounting practices Variable overhead Fixed overhead $10,000 $8R0 Prepare a complete analysis of all production variances Use a four way analysis for overhead. Materials price variances are isolated at the time of purchase. The following shows factory overhead budget information for Los Alamitos Inc, for the year Indirect materials used 050 per machine hour plus Indirect labor Power Repairs and maintenance $150 per machine hour plus $6,000 fixed cost $92,000 fixed cost $0.95 per machine hour $2,100 fixed cost $9,500 fixed cost $12,000 fixed cost Rent la 19A, the company operated at 11,000 machine hours and incurred the following overhead costs Indirect materials used 11,700 Indirect labor Power Repairs and maintenance 19200 Depreciation Rent 91,000 10,650 9,500 12,500 Compare the flexible budget with the actual overhead, computing a variance for each item and for the total overhead. Indicate whether variances are favorable (F) or unfavorable (U). Direct materials Iron Copper Direct labor 5 sheets $2.00-$10.00 3 spools $3.009.00 4 hours @$7.00 28.00 Variable overhead 4 hours $3.00 12.00 4 hours $2.00 8.00 Fixed overhead Total 567.00 Overhead rates were based on normal and expected monthly labor hours for 19x7, both of which were 4,000 direct labor hours Practical capacity for this department is 5,000 direct labor hours per month. Variable overhead costs are expected to vary with the number of direct labor hoursactually used During October 19X7, 800 transformers were produced. This was below expectations because a work stoppage occurred during contract negotiations with the labor force. Once the contract was settled, the department scheduled overtime in an attempt to catch up to expected production levels Actual costs incurred in October 19X7 were as follows: Direct materials: Purchased Used 000 sheets$2.00 per sheet 3900 sheets 2,200 spools $3.10 Iron 2.600 spools Copper Regular time Overtime Direct labor 2,000 hours @ $7.00 1.400 hours$7.20 600 of the 1,400 hours were subject to overtime premium. The total overtime premium of $2.160 is included in variable overhead in accordance with corporate accounting practices Variable overhead Fixed overhead $10,000 $8R0 Prepare a complete analysis of all production variances Use a four way analysis for overhead. Materials price variances are isolated at the time of purchase. The following shows factory overhead budget information for Los Alamitos Inc, for the year Indirect materials used 050 per machine hour plus Indirect labor Power Repairs and maintenance $150 per machine hour plus $6,000 fixed cost $92,000 fixed cost $0.95 per machine hour $2,100 fixed cost $9,500 fixed cost $12,000 fixed cost Rent la 19A, the company operated at 11,000 machine hours and incurred the following overhead costs Indirect materials used 11,700 Indirect labor Power Repairs and maintenance 19200 Depreciation Rent 91,000 10,650 9,500 12,500 Compare the flexible budget with the actual overhead, computing a variance for each item and for the total overhead. Indicate whether variances are favorable (F) or unfavorable (U)