Golden Food Products produces special-formula pet food. The company carries no inventorles. The master budget calls for the company to manufacture and sell 126,500 cases at a budgeted price of $60 per case this year. The standard direct cost sheet for one case of pet food follows: Varlable overhead is applied based on direct labor-hours. The varlable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $10 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.2million for the coming year. At the end of the year, the costs analyst reported that the sales activity varlance for the year was $336,000 favorable. The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products: During the year, the company purchased 326,500 pounds of material and employed 34,320 hours of direct labor. Required: - Compute the direct materials price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable ovemead price and efficiency varlances. Note: For all requirements, enter your answers in whole dollars. Indicate the effect of eoch variance by selecting "F" for fovorable, or "U" for unfovoroble. If there is no effect, do not select elther option. Golden Food Products produces special-formula pet food. The company carries no inventorles. The master budget calls for the company to manufacture and sell 126,500 cases at a budgeted price of $60 per case this year. The standard direct cost sheet for one case of pet food follows: Varlable overhead is applied based on direct labor-hours. The varlable overhead rate is $16 per direct labor-hour. The fixed overhead rate (at the master budget level of activity) is $10 per unit. All nonmanufacturing costs are fixed and are budgeted at $2.2million for the coming year. At the end of the year, the costs analyst reported that the sales activity varlance for the year was $336,000 favorable. The following is the actual income statement (in thousands of dollars) for the year for Golden Food Products: During the year, the company purchased 326,500 pounds of material and employed 34,320 hours of direct labor. Required: - Compute the direct materials price and efficiency variances. b. Compute the direct labor price and efficiency variances. c. Compute the variable ovemead price and efficiency varlances. Note: For all requirements, enter your answers in whole dollars. Indicate the effect of eoch variance by selecting "F" for fovorable, or "U" for unfovoroble. If there is no effect, do not select elther option
