Materials, Labor and Variable Overhead Variances

The standard cost sheet for Kendra Box Company shows the following unit costs for direct materials and direct labor for each box made:

Direct Materials (4 board feet of lumber @ $2) $ 8

Direct labor (2 standard hours @ $6) 12

Variable Overhead (1.5 machine hours at $2 per MH) 3

Total standard materials, labor and variable overhead costs per box $23

During the month of October, 83,000 board feet of lumber were used to produce 20,000 boxes, and the following actual costs were incurred:

Lumber purchased (100,000 board feet @ 2.20) $220,000

Direct labor (39,600 hours @ 6.05) 239,580

Variable overhead (28,000 machine hours) 58,000

Compute the

Direct materials price and quantity variance

Direct labor rate and efficiency variance

Variable overhead spending and efficiency variance

MATERIAL VARIANCES PRICE VARIANCE (USES QUANTITY PURCHASED)

USAGE OR QUANTITY VARIANCE (USE QUANTITY USED)

LABOR VARIANCES

VARIABLE MANU OH VARIANCES