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Variance Analysis Prior to making the company's budget for month of January 20xx, the various managers at Ford Seasoning set the following standards related to the costs of production. Standard Cost Information Quantity Cost Direct Materials 0.50 pounds per jar 6.00 per pound Direct Labor 0.10 hours per jar 20.00 VOH 0.10 hours per jar 15.00 FOH 0.10 hours per jar 16.67 per bour per hour per hour Actual Cost Information Item Amount 8 Actual Pounds of Direct Materials Used 7,500 Actual Cost of Direct Materials 44,400 Actual Amount of Direct Labor Hours Used 1,620 Actual Cost of Direct Labor 34,020 Actual Variable Manufacturing Overhead 22,110 Actual Fixed Manufacturing Costs 24,800 Requirement Determine the actual direct materials cost per pound and the actual direct labor cost per hour Direct Materials Actual Cost of Direct Materials 44,400 Divide by: Actual Pounds of Direct Mats Used 7,500 Actual Direct Materials Cost per Pound 5.92 5 Direct Labor Actual Cost of Direct Labor 34,020 Divide by: Actual Amount of Direct Labor Hours 1,620 Actual Direct Labor Cost per Hour $ 21.00 Requirement Requirement Calculate the following variances between Ford Seasoning's budgeted figures and the company's actual results. Actual Cost per Standard Cost per Actual Pounds of Direct Materials Cost Variance Pound of DM Pound of DM DM Used 2 Direct Materials Effeciency Variance Actual Pounds of Standard Quantity Standard Cost per DM Used of DM Used Pound of DM 3 4 Direct Labor Cost Variance Actual Cost per DL. Standard Cost per Actual Amount of Hour DL Hour DL Hours Used 5 6 Direct Labor Efficiency Variance Actual Amount of Standard Quantity Standard Cost per DL Hours Used of DL Hours Used DL Hour 7 8 VOH Cost Variance Actual VOH Cost Per DL Hour Standard VOH Cost per DL Hour Actual Amount of DL Hours Used -9 0 VOH Efficiency Variance Actual Amount of Standard Quantity Standard VOH DL Hours Used of DL Hours Used Cost per DL Hour 31 22 Fixed Cost Variance Actual Fixed Costs Budgeted Fixed Costs 13 44 Fixed Cost Volume Variance Budgeted Fixed Costs Allocated Fixed Costs 45 46 47 Variance Analysis Prior to making the company's budget for month of January 20xx, the various managers at Ford Seasoning set the following standards related to the costs of production. Standard Cost Information Quantity Cost Direct Materials 0.50 pounds per jar 6.00 per pound Direct Labor 0.10 hours per jar 20.00 VOH 0.10 hours per jar 15.00 FOH 0.10 hours per jar 16.67 per bour per hour per hour Actual Cost Information Item Amount 8 Actual Pounds of Direct Materials Used 7,500 Actual Cost of Direct Materials 44,400 Actual Amount of Direct Labor Hours Used 1,620 Actual Cost of Direct Labor 34,020 Actual Variable Manufacturing Overhead 22,110 Actual Fixed Manufacturing Costs 24,800 Requirement Determine the actual direct materials cost per pound and the actual direct labor cost per hour Direct Materials Actual Cost of Direct Materials 44,400 Divide by: Actual Pounds of Direct Mats Used 7,500 Actual Direct Materials Cost per Pound 5.92 5 Direct Labor Actual Cost of Direct Labor 34,020 Divide by: Actual Amount of Direct Labor Hours 1,620 Actual Direct Labor Cost per Hour $ 21.00 Requirement Requirement Calculate the following variances between Ford Seasoning's budgeted figures and the company's actual results. Actual Cost per Standard Cost per Actual Pounds of Direct Materials Cost Variance Pound of DM Pound of DM DM Used 2 Direct Materials Effeciency Variance Actual Pounds of Standard Quantity Standard Cost per DM Used of DM Used Pound of DM 3 4 Direct Labor Cost Variance Actual Cost per DL. Standard Cost per Actual Amount of Hour DL Hour DL Hours Used 5 6 Direct Labor Efficiency Variance Actual Amount of Standard Quantity Standard Cost per DL Hours Used of DL Hours Used DL Hour 7 8 VOH Cost Variance Actual VOH Cost Per DL Hour Standard VOH Cost per DL Hour Actual Amount of DL Hours Used -9 0 VOH Efficiency Variance Actual Amount of Standard Quantity Standard VOH DL Hours Used of DL Hours Used Cost per DL Hour 31 22 Fixed Cost Variance Actual Fixed Costs Budgeted Fixed Costs 13 44 Fixed Cost Volume Variance Budgeted Fixed Costs Allocated Fixed Costs 45 46 47