Problem 15.21 LO 4, 5 Calculate variable cost variances-explain results The standards for one case of Springfever Tonic are as follows: Direct materials 8 lb @ $3.00/b = $24 Direct labor 6 hr @ $10.00/hr =$60 Variable overhead (based on direct labor hours) 6 hr @ $5.00/hr =$30 During the week ended March 13, the following activity took place: 14,800 1b of raw materials were purchased for inventory at a cost of $2.97 per pound. 2,000 cases of finished product were produced. 16,600 1b of raw materials were used. 11,600 direct labor hours were worked at a total cost of $121,800. $60,900 of actual variable overhead costs were incurred. Required: Calculate each of the following variances and provide plausible explanations for the results: Page 596 a. Price variance for raw materials purchased. b. Raw materials usage variance. c. Direct labor rate variance. d. Direct labor efficiency variance. e. Variable overhead spending variance. f. Variable overhead efficiency variance.Problem 15.22 LO 4, 5 Calculate variable cost variances-explain results The standards for one case of liquid weed killer are as follows: Direct materials 6 lb @ $ 7.50/b Direct labor 3.6 hr @ $16.00/hr Variable overhead (based on machine hours) 1.2 hr @ $ 5.50/hr During the week ended May 6, the following activity took place: 4,360 machine hours were worked. 22,800 1b of raw material were purchased for inventory at a total cost of $174,420. 3,800 cases of finished product were produced. 22,580 1bs of raw material were used 13,440 labor hours were worked at an average rate of $16.25 per hour. $23,108 actual variable overhead costs were incurred. Required: Calculate each of the following variances and provide plausible explanations for the results: a. Price variance for raw materials purchased. b. Raw materials usage variance. c. Direct labor rate variance. d. Direct labor efficiency variance. e. Variable overhead spending variance. f. Variable overhead efficiency variance.Problem 15.25 LO 5, 6 Fixed overhead variances-various issues Graystone's production budget for September called for making 60,000 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed overhead budget for September was $54,000. Graystone uses an absorption costing system. Actual activity and costs for September were Units produced 58,500 Fixed overhead costs incurred $55,500 Required: a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in September. b. Calculate the number of machine hours that would be allowed for actual September production. Page 598 c. Calculate the fixed overhead applied to work in process during September. d. Calculate the over- or underapplied fixed overhead for September. e. Calculate the fixed overhead budget and volume variances for September