P10-33

a. Compute all standard cost variances for materials and labor. b. Give one possible reason for each of the preceding variances. c. Determine the standard variable cost of the 1,700 tents produced, separated into direct materials and labor. Big Dog company, a manufacturer of dog food, produces its product in 1,000 bag batches. The standard cost of each batch consists of 8,000 pound of direct materials at $0.40 per pound, 48 direct labor hours at $8.75 per hour, and variable overhead cost (based on machine hours) at the rate of $10per hour with 16 machine hours per batch. The following variable costs were incurred for the last 1,000 bag batch produced: a. Determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor, and variable overhead. b. For the last 1,000 bag batch, determine the standard cost variances for direct materials direct labor, and variable overhead. c. Explain the possible causes for each of the variances determined in requirement (b). The following data for O'Keefe Company pertain to the production of 500 units of Product X during December. Selected data items are omitted