During July, the following are given: Standard unit price 12.50 Standard Quantity Allowed for actual production 6,300 units Actual unit purchase price Quantity purchased and used for production Required: 1. Total material variance 2. Material efficiency variance 3. Material spending variance LEARNING ACTIVITY 2: DIRECT LABOR VARIANCE The following are given: Units produced Hours required to produce a unit Standard rate is 15/hr 3,200 2 hours Actual direct labor is 79,200 with 12 per hour Required: 1. Total labor variance 2. Labor rate variance 3. Labor efficiency variance 13 6,900 units 1-WAY 2-WAY(CON-VOL) 3-WAY(S-E-VOL) 4-WAY(S-S-E-VOL) 5-WAY(S-S-E-I-F) AFOH 111,000 AFOH 111,000 AFOH- 111,000 AFOH 28k & 83K Spending Variance Variable Spending 2.000F AFOH- 28k & 83 Spending Variable 2.000F BAAH Controllable Variance 1,000UF Fixed Spending Fixed Spending 110,000 110,000 110,000 6,000UF Efficiency Variance BAAH 30K & 80K 3,000UF 3,000UF 30K & 80 Efficiency Variance Efficiency Variance 5.000UF TOTAL BASH 105,000 BASH 105,000 BASH 105,000 BASH 105,000 OVERHEAD VARIANCE 4,000 (6,000) 2,000 14,000F Multiply: Fixed Overhead Rate 20 40,000F AHSR AHSR Volume AHSR 150,000 150,000 Variance 150,000 Volume Variance AHSR 150,000 Volume AHSR Variance Fixed Efficiency Variance Standard Hours 20,000F 20,000F 20,000F UF Less: Actual Hours Mutiply: Fixed Overhead Rate Fixed Efficiency Variance (20) 20,000UF 5,000 (6,000) 1,000 5,000UF BASH Idle Capacity Variance Normal Capacity Hours Less: Actual Hours F Idle Capacity Variance 5,000UF SHSR 125,000 SHSR 125,000 SHSR- 125,000 =14,000F =14,000F SHSR 125,000 SHSR 125,000 =14,000F =14,000F