Problem 11-6

XO-20 is an oil-based product used to remove rust on bolts and nuts that are stuck. Its accounting system uses standard costs. The standards per 0.4-liter can of solution call for 0.78 liters of material and 4 hours of labor. (0.78 liters of material are needed due to evaporation in the production process.) The standard cost per liter of material is $2.5. The standard cost per hour for labor is $12.60. Overhead is applied at the rate of $15.40 per can. Expected production is 7,700 cans with fixed overhead per year of $30,569 and variable overhead of $11.43 per unit (a 0.4-liter can). During 2015, 7,950 cans were produced; 13,500 liters of material were purchased at a cost of $64,395; 10,170 liters of material were used in production. The cost of direct labor incurred in 2015 was $365,442, based on an average actual wage rate of $10.78 per hour. Actual overhead for 2015 was $125,000.

Calculate material, labor, and overhead variances. (Round answers to o decimal places, e.g. 125. Enter all variances as a positive number.) Material Price Variance Neither Unfavorable nor Favorable Material Quantity Variance Unfavorable Favorable Labor Rate Variance Labor Efficiency Variance s a Controllable Overhead Variance Overhead Volume Variance LINK TO TEXT LINK To TEXT LINK TO TEXT