Problem 6-30 (Part Level Submission) Lexi Belcher picked up the monthly report that Irvin Santamaria left on her desk. She smiled as her eyes went straight to the bottom line of the report and saw the favorable variance for operating income, confirming her decision to push the workers to get those last 270 cases off the production line before the end of the month. But as she glanced over the rest of numbers, Lexi couldnt help but wonder if there were errors in some of the line items. She was puzzled how most of the operating expenses could be higher than the budget since she had worked hard to manage the production line to improve efficiency and reduce costs. Yet the report, shown below, showed a different story.

		Actual		Budget		Variance
Cases produced and sold		10,250			9,980			270	Favorable
Sales revenue		$1,943,600			$1,866,300			$77,300	Favorable
Direct material		559,878			548,900			10,978	Unfavorable
Direct labor		267,115			259,480			7,635	Unfavorable
Variable manufacturing overhead		284,442			279,440			5,002	Unfavorable
Variable selling expenses		92,944			89,820			3,124	Unfavorable
Variable administrative expenses		41,657			39,920			1,737	Unfavorable
Contribution margin		697,564			648,740			48,824	Favorable
Fixed manufacturing overhead		110,778			109,780			998	Unfavorable
Fixed selling expenses		69,361			69,860			499	Favorable
Fixed administrative expenses		129,540			129,740			200	Favorable
Operating income		$387,885			$339,360			$48,525	Favorable

Lexi picked up the phone and called Irvin. Irvin, I dont get it. We beat the budgeted operating income for the month, but look at all the unfavorable variances on the operating costs. Can you help me understand whats going on? Let me look into it and Ill get back to you, Irvin replied. Irvin gathered the following additional information about the months performance.

		Direct materials purchased: 101,796 pounds at a total of $559,878
		Direct materials used: 101,796 pounds
		Direct labor hours worked: 26,447 at a total cost of $267,115
		Machine hours used: 40,868

Irvin also found the standard cost card for a case of product.

		Standard Price		Standard Quantity		Standard Cost
Direct materials		$5.5 per pound		10 pounds		$55
Direct labor		$10 per DLH		2.59 DLH		25.90
Variable overhead		$7 per MH		4 MH		28.00
Fixed overhead		$2.74 per MH		4 MH		10.96
Total standard cost per case						$119.86

(a-g) (a-b) Calculate the direct material price variance and direct material quantity variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct material price variance		$
Direct material quantity variance		$

(c-d) Calculate the direct labor rate variance and direct labor efficiency variance for the month. (Round answers to 0 decimal places, e.g. 1525. If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct labor rate variance		$
Direct labor efficiency variance		$

(e-f) Calculate the variable overhead spending variance and variable overhead efficiency variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Variable overhead spending variance		$
Variable overhead efficiency variance		$

(g) Calculate the fixed overhead spending variance for the month. (If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Fixed overhead spending variance

$