Standard Costs and Overhead Analysis

Q0553: Tidal Manufacturing Company manufactures a single product - surf boards. standard cost care for the is: The Quantity Price Cost/Unit Direct Materials 6 m $1.50 per m $9.00 Directed Labour 1 hr $6.75 per hr $6.75 Variable manufacturing overhead 1 hr $4.50 per hr $4.50 Total cost per unit $20.25 During the month of October, 6,000 units were produced. Selected cost data relating to the month's production follow: Quantity Price Materials Purchase 60,000 m $1.43 per m m Materials used in production 38,000 m Direct labour Variable manufacturing overhead Variable overhead efficiency (quantity) variance Cost $85,800 $41 ,925 $3 0,713 $2,250 Unfavourable There was no beginning inventory of raw materials. The variable overhead rate is based on direct labour-hours. Required: . For direct materials, compute the price and quantity variances for the month . For direct labour, compute the rate (price) and efciency (quantity) variances for the month . For variable overhead, compute the spending (price) variance and total variance for the month . Provide an example for each of the variances in parts a-c. 6 different examples are required