Songsu Co. is struggling to control costs. We are hired as consultants to determine why the companys actual costs exceed budgeted costs. The Tableau Dashboard is provided for our analysis.

Fixed Overhead (standard) $6 per hour , 2 hours per unit

Variable Overhead (standard) $12 per hour , 2 hours per unit

Actual Fixed Overhead: 68,000

Actual Variable Overhead:101,000

Actual Units manufactured: 5,100 units

1. & 2. Compute the direct labor rate variance and direct labor efficiency variance. Indicate whether this cost variance is favorable, unfavorable or no variance. 3. & 4. Compute the variable overhead variance and fixed overhead variance. Indicate whether this cost variance is favorable, unfavorable or no variance.

Direct Materials Standard Actual Direct Labor Standard Actual $7 $17 $6 6 los 6 15 $14 4 lbs 4 10 2 hrs 2.5hs 0 0 Pounds Pe.. Price Pc.. Pounds Pc.. Price Pe.. Hours Pe... Price P... Hours Pe Price Pe.. Overhead - Standard Costs Overhead - Actual Costs $20 $15 Price Per Hour $10 Fixed Overhead $5 $0 Bhrs $169,000 6 hrs Variable Overhead Hours Per Unit 4 hrs 2 hrs Ohrs Fixed Overhead Variable Overhead Actual Units Manufactured +ableau AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate Req 1 and 2 Req 3 and 4 Compute the direct labor rate variance and direct labor efficiency variance. Indicate whether this cost variance is favorable, un variance. Actual Cost Standard Cost $ 0 $ 0 $ 0 0 Req 1 and 2 Req 3 and 4 Compute the variable overhead variance and fixed overhead variance. Indicate whether this cost variance is favorable, unfavorable or no variance. Predetermined OH Standard DL Rate Hours Overhead Costs Applied Actual Results Variance Fav./Unf. Variable overhead costs Fixed overhead costs 10,200 Total overhead costs