I have some of this done, not sure if its correct. There are similiar ones on chegg but this has different numbers used.

zippy inc. manufactures a fuel additive, surge, ... Question: Zippy Inc. manufactures a fuel additive, Surge, wh... Bookmark Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of $44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippy's financial statements for the year ended September 30, management has asked you to review some computations made by Zippy's cost accountant. Your working papers disclose the following about the company's operations: Standard costs per drum of product manufactured:

Materials 8 gallons of chemicals @ $2...............$16

1 empty drum..........................................1 $17

Direct labor-1 hour.................................. $ 10

Factory Overhead.................................... $ 6

Costs and expenses during September:

Chemicals: 645,000 gallons purchased at a cost of $1,140,000; 600,000 gallons used.

Empty drums: 94,000 purchased at a cost of $94,000; 80,000 drums used.

Direct labor: 81,000 hours worked at a cost of $816,480. Factory overhead: $768,000. Required: Calculate the following variances for September using Excel Problem 8-3 format to answer (attached) 1. Materials quantity variance. 2. Materials purchase price variance. 3. Labor efficiency variance. 4. Labor rate variance.

When differences and variances are correct the cell will change to green.

Problem 8-3

Standard Quantity or Hours

Actual Quantity or Hours

Difference

Standard Rate/Price

Variance

1.

Materials quantity variance:

Surge

640,000

gal.

600,000

gal.

40,000

F

$2.00

/gal.

$ 80,000

F

Empty drums

80,000

drums

80,000

drums

-

N

$1.00

/drum

-

N

3.

Labor efficiency variance

80,000

hrs.

81,000

hrs.

1,000

U

$10.00

/hr.

$ 10,000

U

Standard Rate/Price

Actual Rate/Price

Difference

Actual Quantity or Hours

Variance

2.

Materials purchase price variance:

Surge

$2.00

/gal.

/gal.

gal.

Empty drums

$1.00

/drum

/drum

drums

4.

Labor rate variance

$10.00

/hr.

/hr.

hours