Problem B SHOW ALL WORK! Homework Note: For Material and Labor STANDARD use the ACTUAL number of units produced x standard per unit (you can use either the amount per unit x standard rate or the standard cost per unit given instead...example, Direct materials standard is 0.25 pounds per unit x $8 per pound or $2.00 per UNIT. Remember, this will tell you the material standard cost is $2 per UNIT and is not the cost per pound purchased. If Variable overhead is applied based on units produced, use the standard cost provided for each unit produced. Calculate STANDARD for Variable OH using standard volume x standard cost per unit. The standard cost of the product manufactured by Tahoe Company is calculated based on 96,000 units and consists of: Direct materials (0.75 pounds x $14 per pound) Direct labor (1.5 hours x $17.50 per hour) Variable manufacturing overhead Fixed manufacturing overhead ($144,000 in total) Total Standard cost per unit $10.50 26.25 2.50 1.50 S40.75 A total of 75,200 pounds of materials was purchased at $14.50 per pound and used 72,000 pounds of material. During May, 98,400 units were produced with the following costs: Direct labor (150,000 hours at $17.80) Variable manufacturing overhead Fixed manufacturing overhead $2,670,000 $249,000 $142,500 Compute the materials price and usage variances, the labor rate and efficiency variances, and the overhead budget and volume variances. (Overhead is applied based on units produced.) Hint? Direct Material Variances: Material price variance Actual Cost (purchased) Flexible Budget Hint? Material quantity for usage) variance Flexible Budget Standard (or budget) Direct Labor Variances: Labor efficiency variance Labor rate variance Actual DL Cost Flexible Budget Standard (or budget) Variable OH Variances: Hint? Variable OH efficiency variance Variable OH spending rate variance Actual Var. OH Cost Flexible Budget Standard (or budget) Fixed OH Variance: Fixed Overhead Spending Variance Actual Cost Standard (or budget)