Question 2 Concord, Ltd. manufactures shirts, which it sells to customers for embroidering with various slogans and emblems. The standard cost card for the shirts is as follows. Direct materials Direct labor Variable overhead Fixed overhead Standard Price Standard Quantity Standard Cost $4 per yard 1.50 yards $6.00 $12 per DLH 0.50 DLH 6.00 $4 per DLH 0.50 DLH 2.00 $6 per DLH 0.50 DLH 3.00 $17.00 Sandy Robison, operations manager, was reviewing the results for November when he became upset by the unfavorable variances he was seeing. In an attempt to understand what had happened, Sandy asked CFO Suzy Summers for more information. She provided the following overhead budgets, along with the actual results for November. The company purchased and used 80,600 yards of fabric during the month. Fabric purchases during the month were made at $3.90 per yard. The direct labor payroll ran $317,275, with an actual hourly rate of $12.25 per direct labor hour. The annual budgets were based on the production of 53,000 shirts, using 248,000 direct labor hours. Though the budget for November was based on 49,500 shirts, the company actually produced 51,500 shirts during the month. Indirect material Indirect labor Equipment repair Equipment power Variable Overhead Budget Annual Budget Per Shirt November-Actual $454,000 $0.90 $49,300 295,000 0.60 31,400 201,000 0.40 20,100 49,500 0.10 7,100 $999,500 $2.00 $107,900 Total Supervisory salaries Insurance Property taxes Depreciation Utilities Quality inspection Fixed Overhead Budget Annual Budget November-Actual $265,000 $21,500 348,000 27,600 85,000 6,900 325,000 26,000 210,000 20,200 276,000 24,600 $1,509,000 $126,800 Total (a) Calculate the direct materials price and quantity variances for November. (If variance is zero, select "Not Applicable" and enter o for the amounts.) Direct material price variance $ Direct material quantity variance $ (b) Calculate the direct labor rate and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter o for the amounts.) Direct labor rate variance $ Direct labor efficiency variance $ (c) Calculate the variable overhead spending and efficiency variances for November. (Round answers to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter o for the amounts.) Variable overhead spending variance $ Variable overhead efficiency variance $ (d) Calculate the fixed overhead spending variance for November. (Round answer to 0 decimal places, e.g. 125. If variance is zero, select "Not Applicable" and enter o for the amounts.) Fixed overhead spending variance $ Click if you would like to Show Work for this question: Open Show Work
