Problem 1

Downton Company manufactures two products, Abby and Mansion. The company prepares its master budget on the basis of standard costs. The following data are for January:

Standards Abby Mansion Direct materials 3 ounces at $14.50 per ounce 4 ounces at $1130 per ounce Direct labor I 5 hours at $60.50 per hour I 6 hours at $01.00 per hour Variable overhead {per direct labor- I $40.00 I $55.50 hou Fixed overhead [per month} $360,060 $390,360 Expected activity:r {direct labor-hours] 6,630 1000 Actual results Direct material {purchased :5: used} 5,200 ounces at $13.50 per 4,600 ounces at $19.?5 per ounce ounce Direct labor 5,110 hours at $64.00 per hour 1510 hours at $05.60 per hour Variable overhead $2?9,550 $399,510 Fixed overhead I $551950 I $409,500 Units produced [actual] 1,100 units 1,200 units Abby Mansion Amount U/F Amount U/F Compute the Direct Materials Variances the direct materials price variance the direct materials quantity/efficiency variance the total variance for direct materials Compute the Direct Labor Variances the direct labor rate/price variance the direct labor efficiency variance the total variance for direct labor Compute the Variable Manufacturing Overhead Variances Price variance Efficiency variance Compute the fixed manufacturing overhead variances Price variance Production volume variance