Exercise 6-25 Your answer is partially correct. Try again. Bonita Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the tests have been developed by the company's controller, Landon Bonita, based on performing 2,100 core tests per month. Standard Quantity Standard Cost Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per test Standard Price 0.50 per pound $10 per DLH $9 per DLH $16 per DLH 5 pounds 0.50 DLH 0.50 DLH 1 DLH $2.50 5.00 4.50 16.00 $28.00 At the end of March, London reported the following operational results: . The company actually performed 2,270 core tests during the month. . 8,500 pounds of direct materials were purchased during the month at a total cost of $5,500. . 5,100 pounds of direct materials were used to conduct the core tests. . 840 direct labor hours were worked at a total cost of $9,810. Actual variable overhead was $8,000. * Actual fixed overhead was $15,600. (a) Calculate the direct materials price varlance for March. (Round per unit value to 2 decimal places, e.g.52.75 and final answer to 0 decimal places, e.g. 5,275. If varlance is zero, select "Not Applicable" and enter o for the amounts.) 1400 Unfavorable Direct materials price variance (b) Calculate the direct materials quantity variance for March. Round answer to O decimal places eg 5275 If variance is zero, se ectNot Applicable and enter O for the annemts 2450 Favorable- Direct materials uantity variance (c) Calculate the direct labor rate variance for March. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275. If varlance is zero, select "Not Applicable" and enter for the amounts.) 49.972Unfavorable Direct labor rate variance If variance (d Calculate the direct lab or efficiency variance tor March. Round answer to 0 decimal places e g. 5,275 variance is zero, select Not Applicable ard enter 0 for the amounts 3520 Favorable Direct labor efficiency varlance (e) Calculate the variable overhead spending variance for March. (Round per unit value to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places,e.g. 5,275. If variance is zero, select "Not Applicable" and enter O for the amounts. 320 Unfavorable Variable overhead spending variance (f) Calculate the varlable overhead efficiency varlance for March. (Round answer to 0 decimal places, e.g. 5,275, If varlance is zero, select "Not Applicable" and enter o for the amounts.) 2880 Favorable variable overhead efficiency variance ()Calculate the fixed overhead spending variance for March.(Round per unit value to 2 decimal places, e.g. 52.75 and final ansiver to 0 decimal places, e.g. 5,275. If variance is zero, select "Not Applicable" and enter 0 for d overhea the amounts) 5020 Favorable- Fixed overhead spending variance d overhiea Exercise 6-25 (Essay) Carson Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the tests have been developed by the company's controller, Landon Carson, based on performing 2,100 core tests per month Standard Quantity Standard Cost Direct materials Direct labor Variable overhead Fixed overhead Total standard cost per test Standard Price $0.50 per pound $10 per DLH s9 per DLH $16 per DLH 4 pounds 5 DLH 5 DLH 5 DLH $2.00 5.00 4.50 8.00 $19.50 At the end of March, London reported the following operational results: . The company actually performed 2,250 core tests during the month. . 8,500 pounds of direct materials were purchased during the month at a total cost of $5,600 6,300 pounds of direct materials were used to conduct the core tests. . 850 direct labor hours were worked at a total cost of $9,775 . Actual variable overhead was $7,800 .Actual flxed overhead was $15,750. (h) Prepare a memo to Landon Carson providing possible explanations for the direct materials and direct labor variances
