Sheffeid Corporation manufactures a single product. The standard cost per unit of product is shewn bellow The predetermined manufacturing overhead rate is $16 per direct labor hour ($8.00+0.50). it was computed trom a master manufacturing overhead budget based on normal production of 2,500 direct labor hours ( 5,000 units) for the manth. The master budget showed total variable costs of $13,750 ( $5,50 per hour) and total fixed owerhead costs of $26,250 ( $10,50 per hour) Actual costs for October in producing 3,900 units were as follows manufacturing overhead budget based on normal production of 2,500 direct Wbor hcurs ( 5000 units) for the month. The manter budget showed total variable costs of $13,750 ( $5.50 per hour) and total fixed overhead costs of $26,250 (\$10.50 per hour). Actual corts tor October in producing 3,900 units were as follows The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw. materials inventories, therefore, can be ignored \{a) Compute all of the materials and labor variances. The purchasing department byws the quantities of raw materials that are expected to be usedin productiori each manth. Raw materials inventeries therelore, can be ignored (a) Compute all of the materials and laber variances. Materials quantity variance $ Total labor variance Labor price variance Labor quantity variance 5 (b) Compute the total overhead variance. Total overhead variance 5 Sheffeid Corporation manufactures a single product. The standard cost per unit of product is shewn bellow The predetermined manufacturing overhead rate is $16 per direct labor hour ($8.00+0.50). it was computed trom a master manufacturing overhead budget based on normal production of 2,500 direct labor hours ( 5,000 units) for the manth. The master budget showed total variable costs of $13,750 ( $5,50 per hour) and total fixed owerhead costs of $26,250 ( $10,50 per hour) Actual costs for October in producing 3,900 units were as follows manufacturing overhead budget based on normal production of 2,500 direct Wbor hcurs ( 5000 units) for the month. The manter budget showed total variable costs of $13,750 ( $5.50 per hour) and total fixed overhead costs of $26,250 (\$10.50 per hour). Actual corts tor October in producing 3,900 units were as follows The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw. materials inventories, therefore, can be ignored \{a) Compute all of the materials and labor variances. The purchasing department byws the quantities of raw materials that are expected to be usedin productiori each manth. Raw materials inventeries therelore, can be ignored (a) Compute all of the materials and laber variances. Materials quantity variance $ Total labor variance Labor price variance Labor quantity variance 5 (b) Compute the total overhead variance. Total overhead variance 5
