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Problem 10-33 Comprehensive Standard Cost Variances [LO2, LO3, LO4, LO5, LO6] Clanssa McWhirter, vice-president of Cyprus Company, was pleased to see a small variance on

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Problem 10-33 Comprehensive Standard Cost Variances [LO2, LO3, LO4, LO5, LO6] Clanssa McWhirter, vice-president of Cyprus Company, was pleased to see a small variance on the income statement after the trouble the company had been having in controlling manufacturing costs. She noted that the $18,500 overall manufacturing variance reported last period was well below' the 3% limit that had been set for variances. The company produces and sells a single product. The standard cost card for the product follows: The following additional information is avaliable for the year just completed: a. The company manufactured 20,000 units of product during the yeat b. A total of 78.000 metres of material was purchased during the year at a cost of $3.25 per metre. All of this material was used to manufacture the 20.000 units. There were no beginning or ending inventories for the year. c. The company worked 32.500 direct labour-hours during the year at a cost of $15 per hour. d. Overhead cost is applied to products on the basis of standard direct labour-hours. Data relating to manufacturing overhead costs follow: Required: 1. Compute the direct materials price and quantity variances for the yeac, (indicate the effect of each variance by selecting " F " for tavorable, "U" for unfovorable, and "None" for no effect (i.e., rero variance).) 2. Compute the direct labour rate and efliciency variances for the year, (Indicate the effect of each variance by selecting "F" for fovorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) 3. For manufacturing overhead, compute the following: a. The variable overthead spending and efficiency variances for the yeac, findicate the effect of each variance by selecting "F* for favorable, " " U for unfavorable, and "None" for no effect (1.e., zero variance).) b. The sked ovethead buboet and voume variarices for the year. (indicate the effect of each variance by selecting "F" for favoratis. "U: for unfavorable, and "Nohe" for ne eflect (li.e.4 tere variance) s. 4. Compule the total wanance, findicate the effect of each veriance by selecting "F" for favorabie, "U" for unfavernbie, and "Niene" for ne effect (fe, atro wariance). inout all amounts as positive values)

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