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Problem 16-73 (Algo) Comprehensive Variance Problem (LO 16-5, 6) Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget

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Problem 16-73 (Algo) Comprehensive Variance Problem (LO 16-5, 6) Sweetwater Company manufactures two products, Mountain Mist and Valley Stream. The company prepares its master budget on the basis of standard costs. The following data are for March Standards Mountain Mist Valley Stream Direct materials 3 ounces at $15.00 per ounce 4 ounces at $17.00 per ounce Direct labor 5 hours at $60.00 per hour 6 hours at $75 per hour Variable overhead (per direct labor-hour) 548 553.00 Fixed overhead (per month) $365,625 $398,50 Expected activity (direct labor-hours) Actual results Direct material (purchased and used) 3,600 ounces at $14.00 per ounce 4,500 ounces at $13.50 per Ounce Direct Labor 4,950 hours at 562.00 per hour 7,460 hours at $59.60 per hour Variable overhead $251, 550 5383,51e Fixed overhead $318,950 $397,100 Units produced (actual) 1,050 units 1,200 units 6,250 7,800 Required: a. Prepare a variance analysis for each variable cost for each product b. Prepare a food overhead variance analysis for each product (For all requirements. Do not round Intermediate calculations. Indicate the effect of each variance by selecting "P" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Mountain Mist 1,200 unit Required: a. Prepare a variance analysis for each variable cost for each product. b. Prepare a fixed overhead variance analysis for each product (For all requirements, Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, o "U" for unfavorable. If there is no effect, do not select either option) Mountain Mist Price Variance Efficiency Variance nces Valley Stream Price Variance Efficiency Variance Direct materals Direct labor Variable overhead Price Variance Fixed overhead Production Volume Variance Price Variance Production Volume Variance

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