Part 3
The roofing company manufactures shingles.
Standard Cost Sheet per shingle
Direct materials	Asphalt	1.5	pounds	$0.07	per pound
Direct labor		0.01	direct labor hour	$10	per hour
Variable Manufacturing overhead		0.01	direct labor hour	$2	per hour
Fixed Manufacturing overhead		0.01	direct labor hour	$10	per hour
	Total standard cost per shingle
Budgeted fixed manufacturing overhead for the period is							$60,000
Budgeted units to be produced							600,000	Units
Standard fixed manufacturing overhead based on expected capacity of							6000	direct labor hours
	The following information is available regarding the company's actual operations for the period.
	Shingles produced						530,000
	Materials purchased:
		Asphalt			755,000	pounds	$0.08	per pound
	Materials used:
		Asphalt			750,000	pounds
	Direct labor:				5,100	hours	$11.00	per hour
	Manufacturing overhead incurred:
		Variable					$11,271
							$2.21	VOH rate per direct labor hour
		Fixed					$59,500
Required: Make sure you do not forget to label each variance U or F. You need to use cell references for your calculations.
1. Calculate the direct materials price and quantity variance.
Material price variance should be based on material purchased, since you want to isolate the variance as soon as possible.
Material Quantity variance should be based on materials used, since this is monitoring the production efficiency.
Material purchase price variance
Material Quantity variance
2. Calculate the direct labor rate and efficiency variances.
Labor rate variance
Labor Efficiency variance
3. Variable manufacturing overhead spending and efficiency variances.
Variable overhead spending variance
Variable overhead efficiency variance
4. Fixed manufacturing overhead budget variance.
Fixed Manufacturing overhead budget variance