1. Direct materials variances (9 pts)

• • Yealink Company produces a product that requires 5.0 standard pounds per unit. The standard price is $7.50 per pound. If 30,000 units used 72,000 pounds, which were purchased at $8.00 per pound, what is the direct materials (A) price variance, (B) quantity variance, and (C) cost variance?

1. Direct labor variances (9 pts)

• • Yealink Company produces a product that requires 2 standard direct labor hours per unit at a standard hourly rate of $10 per hour. If 7,500 units used 30,900 hours at an hourly rate of $9.90 per hour, what is the direct labor (A) rate variance, (B) time variance, and (C) cost variance?

1. Factory overhead controllable variance (3 pts)

• • Yealink Company produced 7,500 units of product that required 2 standard direct labor hours per unit. The standard variable overhead cost per unit is $0.45 per direct labor hour. The actual variable factory overhead was $26,385. Determine the variable factory overhead controllable variance.

1. Factory overhead volume variance (3 pts)

• • Yealink Company produced 7,500 units of product that required 2 standard direct labor hours per unit.
  • The standard fixed overhead cost per unit is $0.575 per direct labor hour at 29,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance.