Question 1

Given the following information:

	Original Budget	Actual
Units produced	1,000 units	970 units
Materials (kg)	400 kg	409 kg
Material Costs	$8,000	See other info
Direct Labour (Hours)	36,000 hours	34,010 hours
Direct Labour Costs	$385,000	$365,750
Variable Overhead Costs	$255,000	$245,000
Fixed Overhead Costs	$160,000	$165,000

Other Information

Overhead is Allocated on Direct Labour Hours

During the year, 500 kg of materials were purchased for $9,000

Beginning Inventory: none

Ending Inventory: 91kg

Required:

Calculate the following variances:

1. Material Price/Rate
2. Material Efficiency
3. Labour Price/Rate
4. Labour Efficiency
5. Variable Overhaed Rate
6. Variable Overhead Efficiency
7. Fixed Overhead Rate

H.Fixed Overhead Production Volum