Problem 8-24B Comprehensive Variance Analysis [LO8-4, LO8-5, LO8-6]

Stephaney Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 810 direct labor-hours each month and produce 4,500 robes. The standard costs associated with this level of production are as follows:

	Total		Per Unit of Product
Direct materials	$	122,850	$ 27.30
Direct labor	$	20,250	4.50
Variable manufacturing overhead (based on direct labor-hours)	$	4,050	0.90
			$ 32.70

During April, the factory worked only 800 direct labor-hours and produced 5,000 robes. The following actual costs were recorded during the month:

	Total		Per Unit of Product
Direct materials (18,000 yards)	$	135,000	$ 27.00
Direct labor	$	23,500	4.70
Variable manufacturing overhead	$	9,500	1.90
			$ 33.60

At standard, each robe should require 3.5 yards of material. All of the materials purchased during the month were used in production.

Required:
1.	Compute the materials price and quantity variances for April: (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar amount.)

Materials price variance		F
Materials quantity variance		U
sheet is drawn here

2.

Compute the labor rate and efficiency variances for April: (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar amount.)

Labor rate variance		U
Labor efficiency variance		F
sheet is drawn here

3.

Compute the variable manufacturing overhead rate and efficiency variances for April: (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)

Variable overhead rate variance		U
Variable overhead efficiency variance		F
sheet is drawn here