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PART 6 Standard Job Order Costing - Variance Analysis Special order lamps are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders: Standards Lamp Kits Direct Labor Variable Overhead ** Fixed Overhead Total $ 16.000000 per lamp 2.400000 per lamp (4 lamps/hr.) 0.250000 per lamp (4 lamps/hr.) 10.000000 per lamp 28.650000 ** Fixed overhead is based on expected production of 4,012 customized lamps each month. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences. Job Order Costing Section On January 1, 20x2, Division S began Job 1101 for the Client, THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4,150 Lamp Kits @ $16.70 per kit. 9-Jan 4, 150 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 630 Direct Labor Hours @ $9.75 per hour. 30-Jan Payroll of 680 Direct Labor Hours @ $10.00 per hour. 30-Jan 3,988 lamps were completed and shipped. All materials requisitioned were used or scrapped. Month End Overhead Information Actual Variable Overhead Actual Fixed Overhead $ 1,179.00 $ 41, 123.45 How many Lamps were completed? 28,400 lamps Note: Show favorable variances as negative numbers Round dollars to two places, $##.## What was the total material price variance for the Lamp Kits purchased? $ 2,905.00 {15.01} What was the material usage variance for Lamp Kits? $ 2,432.00 {15.02 What was the direct labor efficiency variance ? $ 3,004.80 {15.03} Nhat was the direct labor rate variance? {15.04} Note: Show favorable variances as negative numbers What was the variable overhead efficiency variance ? {16.01} What was the variable OH spending variance ? {16.02} What is the fixed OH volume (denominator) variance? {16.03} What is the fixed OH spending variance? (16.04}