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Rigsby Resins Company processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the
Rigsby Resins Company processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 2,700 units of product were as follows: Standard Costs Actual Costs Direct materials 6,750 pounds at $6.20 6,900 pounds at $6.15 Direct labor 2,160 hours at $20.10 2,200 hours at $20.50 Factory overhead Rates per direct labor hour, based on 100% of normal capacity of 2, 100 direct labor hours: Variable cost, $2.75 $5,750 variable cost Fixed cost, $16.50 $34,650 fixed cost Each unit requires 0.8 hour of direct labor. Calculate the following: a. Direct Materials Price Variance b. Direct Materials Quantity Variance c. Total Direct Materials Cost Variance d. Direct Labor Rate Variance e. Direct Labor Time/Efficiency Variance f. Total Direct Labor Variance
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