Requirement 1. Compute cost and efficiency variances for direct?materials, direct?labor, and variable overhead.

Select the formulas to calculate direct materials cost and efficiency?variances, then enter the variance amounts and the total. ?(Abbreviations used: AC?= actual?cost; AQ?= actual?quantity; FOH?= fixed?overhead; SC?= standard?cost; SQ?= standard quantity. Label each variance as favorable?(F) or unfavorable?(U). Enter a?"0" for any zero balances. For any?$0 variances, leave the Favorable?(F)/Unfavorable (U) input?blank.)

Formula

Variance

Direct materials cost variance

=

=

Direct materials efficiency variance

=

=

Total direct materials variance

?Next, select the formulas to calculate direct labor cost and efficiency?variances, then enter the variance amounts and the total. ?(Abbreviations used: AC?= actual?cost; AQ?= actual?quantity; FOH?= fixed?overhead; SC?= standard?cost; SQ?= standard quantity. Label each variance as favorable?(F) or unfavorable?(U).)

Formula

Variance

Direct labor cost variance

=

=

Direct labor efficiency variance

=

=

Total direct labor variance

?Finally, select the formulas to calculate the variable overhead cost and efficiency?variances, then enter the variance amounts and the total. ?(Abbreviations used: AC?= actual?cost; AQ?= actual?quantity; FOH?= fixed?overhead; SC?= standard?cost; SQ?= standard?quantity; VOH?= variable?overhead.)

Formula

Variance

VOH cost variance

=

=

VOH efficiency variance

=

=

Total variable overhead variance

Requirement 2. Compute the cost and volume variances for fixed overhead.

Select the formulas to calculate the fixed overhead cost and volume?variances, then enter the variance amounts and the total. ?(Abbreviations used: AC?= actual?cost; AQ?= actual?quantity; FOH?= fixed?overhead; SC?= standard?cost; SQ?= standard quantity. Label each variance as favorable?(F) or unfavorable?(U). Enter a?"0" for any zero balances. For any?$0 variances, leave the Favorable?(F)/Unfavorable (U) input?blank.)

Formula

Variance

FOH cost variance

=

=

FOH volume variance

=

=

Total fixed overhead variance

Choose from any list or enter any number in the input fields and then continue to the next question.

Maloney Company produced 13,000 book bags in June, and actual amounts were as follows: Requirements a (Click the icon to view the actual amounts.) 1. Compute cost and efficiency variances for direct materials, direct labor, and variable overhead. Maloney's standards were as fo||ows; 2. Compute the cost and volume variances for fixed overhead. E (Click the icon to View the standards.) Formula Variance 0 Data Table 0 Data Table Direct materials cloth 2 ard 5 er book ba $2.20 er ard ( ) y ( ) p g @ p y Direct materials (cloth) 26,400 yards @ $2.20 per yard Direct labor 2,600 hours @ $9.00 per hour Variable overhead is 5,200 Direct labor 0.60 direct labor hours per book bag @ $9.50 per direct labor hour Variable overhead 0.60 direct labor hours per book bag @ $2.50 per direct labor hour Fixed overhead $84,000 (0.60 direct labor hours per book bag @ $10.00 per direct labor hour) Fixed overhead 86,300 E El Choose from any list or enter any number in the input fields and then continue to the next question.