L010-29 Compute the direct labor rate and efficiency variances and explain their significance. DUNUIT 101 PULUU Buaget Performance Report for Variable Manufacturing Costs Colonial Pewter Flexible Budget Performance Report-Variable Manufacturing Costs For the Month Ended June 30 Actual Spending Flexible Activity Results Variances Budget Variances Statues produced (9) 2,000 2,000 Direct materials ($12.00) $24,700 $700 U $24,000 $1,200 F Direct labor ($11.000) $22,680 $680 U $22,000 $1,100 F Variable manufacturing overhead ($3.000) $7,140 $1,140 U $6,000 $300 F Planning Budget 2,100 $25,200 $ 23,100 $6,300 LO10-4 (Appendix 10A ) Compute and interpret the fixed overhead budget and volume variances. (1 Po (2) Actual Quantity Actual Quantity Standard Quantity of Input of Input Allowed for Actual Output at Actual Price at Standard Price at Standard Price (AO X AP) (AO X SP) (SO X SP) 6,500 pounds x $3.80 per pound 6,500 pounds x $4.00 per pound 6,000 pounds' x $4.00 per pound $24.700 = $26,000 $24,000 Materials price variance Materials quantity variance -$1,300 F $2,000 U Spending variance = $700 U R8 6,000 pounds. ch *2,000 units X 3.0 pounds per unit F = Favorable; U = Unfavorable