Hawaiian Fruit Company produces canned fruits.During the month of June, Hawaiian Fruit produced 2,320 cases of canned fruits and incurred the following costs.Overhead is allocated based on direct labor hours.

JUNEACTUALANNUAL BUDGET (160,000 DLH)

Variable Overhead $17,600$240,000

FixedOverhead$41,600$480,000

ActualLabor$241,920 based on 12,800 DLhours

ActualMaterial$105,600 based on 48,000 pounds

Standard Costs per Case are as follows:

Direct Material, 16 pounds at $2 perpound$32

Direct Labor, 5.25 hours at $18 perhour$94.50

Variable Overhead, 5.25 DL hours at $1.60 per hr$8.40

Fixed Overhead, 5.25 DL hours * $3.20 perhour$16.80

TOTAL$151.70

Calculate ALL of the Variances (24 pts)and label each as Favorable or Unfavorable (8 pts).

1. Direct Material

Price

Quantity

1. Direct Labor

Rate

Efficiency

1. Variable Overhead

Spending

Efficiency

1. Fixed Overhead

Budget

Volume

5.Based on your results, analyze the variances and recommend improvement ideas for unfavorable variances.5 pts