Prob 11-1B(Prob ending in A are in your book; B prob are only below)

Buil Corporation manufactures a single product.

The standard cost per unit of product is as follows.

Direct materials - 2 pounds of plastic at $6 per pound	$ 12
Direct labor - 2 hours at $13 per hour	26
Variable manufacturing overhead	7
Fixed manufacturing overhead5	5
Total standard cost per unit	50

The master manufacturing overhead budget for the month based on normal productive capacity of 20,000 direct labor hours (10,000 units) shows:

Total variable costs of: $70,000 ($3.50 per labor hour) and

Total fixed costs of: $50,000 ($2.50 per labor hour).

Normal productive capacity is 20,000 direct labor hours.

Overhead is applied on the basis of direct labor hours.

Actual costs for November in producing 9,700 units were as follows.

Direct materials (20,000 pounds)	$ 119,000
Direct labor (19,600 hours)	256,760
Variable overhead	68,800
Fixed overhead	50,000
Total manufacturing costs	494,560

The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

Instructions

(a) Compute all of the materials and labor variances.

(b) Compute the total overhead variance.

(a) Total Materials Variance:

( AQ x AP )	-	( SQ x SP )	=
	-		=

Materials Price Variance:

( AQ x AP )	-	( AQ x SP )	=
	-		=

Materials Quantity Variance:

( AQ x AP )	-	( SQ x SP )	=
	-		=

Total Labor Variance:

( AH x AR )	-	( SH x SR )	=
	-		=

*9,700 x 2

Labor Price Variance:

( AH x AR )	-	( SH x SR )	=
	-		=

Labor Quantity Variance:

( AH x SR )	-	( SH x SR )	=
	-		=

(b) Total Overhead Variance:

Actual Overhead	-	Overhead Applied	=
	-		=