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Bottoms UP Company manufactures recyclable bottles. Consider the following selected data: Direct Materials 450 oz of input at $0.015/oz DirectLabor 0.075 labor hours at $21/labor hour Standards per Bottle Actual Performance: Bottles Produced and Sold Direct Materials Purchased and Used Labor Hours Used Total Direct Materials Costs Total Direct Labor Costs 17,000 units 7,150,000 oz 1,400 labor hours $100,100 $27,650 Required a) Calculate price variance for direct materials. b) Provide a possible reason for the favorable or unfavorable price variance for direct materials. c) Calculate quantity variance for direct materials. d) Provide a possible reason for the favorable or unfavorable quantity variance for direct materials. e) Calculate labor rate variance. f) Provide a possible reason for the favorable or unfavorable rate variance for direct labor. g) Calculate efficiency variance for direct labor. h) Provide a possible reason for the favorable or unfavorable efficiency variance for direct labor. Parta) and b) Direct Materials Variances and Analysis Direct Materials Variance: AO SP Actual Results: Total Actual Results Price Variance F or U F or U Quantity Variance F or U Total Standard Allowed Standard Allowed: Umit Units Produced Direct Materials AQ SO Matcrials/Units Produced AP SP Price Unit AQUAP DMPV A0 SP DMOV SO SP Total Cost DMV Total Direct Materials Variance Provide a possible reason for the favorable or unfavorable Direct Materials Price Variance. Provide a possible reason for the favorable or unfavorable Direct Materials Quantity Variance. Provide a possible reason for the favorable or unfavorable Total Direct Materials Variance. Parte) and d) Direet Lahar Variances and Analysis Direct Labor Variance: AQ SP Actual Results Units Total Actual Results Laber Rate Variance F or F Direct Labor F or Efficiency or U Variance U Total Standard Allowed Standard Allowed: Unit Units Produced Direct Labor AQ SO DLH/Unit AP SP DL price unit AOX AP TERY AO SE DLEV SOX SP Total Cost DEV Total Direct Labor Variance Provide a possible reason for the favorable or unfavorable Direct Laber Rate Variance. Provide a possible reason for the favorable or unfavorable Direct Labor Eficiency Variance. 1 Provide a possible reason for the favorable or unfavorable Total Direct Labor Variance. Parte) and t) Overhead Variances and Analysis Variable Overhead Variance: : AQ SP Actual Results Units Total Actual Results VOH F Spending or Variance U F Direct Labor F or Efficiency or U U Variance U Total Standard Allowed Standard Allowed: Unit Units Produced Varinble Manufacturing Overhead AQ SO Units (DLH) AP SP VOH price DLH AQ x AP VOUSV AQ SE DITV SO SP Total Cont VOHV Total Variable Overhead Variance Provide a possible reason for the favorable or unfavorable Variable Overhead Spending Variance. Provide a possible reason for the favorable or unfavorable Variable Overhead Efficiency Variance. 1 Provide a possible reason for the favorable or unfavorable Total Direct Labor Variance
