Filling Dept. direct labor time variance, $$216U$

$12.$$$5U$

Part C$-$August Variance Analysis

During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities

per case. There were $1,500$ actual cases produced during August, which was $250$ more cases than planned at the beginning of the month. Actual data for August were as follows:

$\backslash$table$[[,\backslash$table$[[$Actual Direct Materials$],[$Price per Unit$]],\backslash$table$[[$Actual Direct Materials$],[$Quantity per Case$]]],[$Cream base,$$0\mathrm{.}016$ per oz$,102$ ozs.$],[$Natural oils,$$0\mathrm{.}32$ per oz$,31$ ozs.$],[$Bottle $(8-$oz$.),$$$0\mathrm{.}42$ per bottle,$125$ bottles$]]$

$\backslash$table$[[,$Actual Direct Labor Rate,$\backslash$table$[[$Actual Direct Labor$],[$Time per Case$]]],[$Mixing$,$$$18\mathrm{.}20,19\mathrm{.}50$min.$],[$Filling$,14\mathrm{.}00,5\mathrm{.}60$min.$],[,,],[$Actual variable overhead,$$305\mathrm{.}00,],[$Normal volume,$1,600$ cases,$]]$

The prices of the materials were different than standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard.

Instructions

$10.$ Determine and interpret the direct materials price and quantity variances for the three materials.

$11.$ Determine and interpret the direct labor rate and time variances for the two departments. Round hours to the nearest hour.

$12.$ Determine and interpret the factory overhead controllable variance.

$13.$ Determine and interpret the factory overhead volume variance.

$14.$ Why are the standard direct labor and direct materials costs in the calculations for parts $(10)$ and $(1$i$)$ based on the actual $1,500-$case production volume rather than the planned $1,250$ cases of production used in the budgets for parts $(6)$ and $(7)?$