The roofing company manufactures shingles.

Standard Cost Sheet per shingle

Direct Materials --- Asphalt --- 1.5 pounds --- $0.07 per pound

Direct Labor --- 0.01 direct labor hour --- $11.00 per hour

Variable Manufacturing Overhead --- 0.01 direct labor hour --- $2.00 per hour

Fixed Manufacturing Overhead --- 0.01 direct labor hour --- $10.00 per hour

Total Standard cost per shingle

Budgeted fixed manufacturing overhead for the period is --- $60,000

Budgeted units to be produced --- 600,000 units

Standard fixed manufacturing overhead based on expected capacity of --- 6000 direct labor hours

The following information is available regarding the company's actual operations for the period.

Shingles produced --- 530,000

Materials purchased:

Asphalt --- 755,000 pounds --- $0.09 per pound

Materials used:

Asphalt --- 750,000 pounds

Direct labor: 5,100 hours --- $13.00 per hour

Manufacturing overhead incurred:

Variable --- $11,322 --- $2.22 VOH rate per direct labor hour

Fixed --- $59,700

Required: Make sure to label each variance U or F. Please show calculations.

1. Calculate the direct materials price and quantitiy variance.

Material price variance should be based on material purchased, since you want to isolate the variance as soon as possible.

Material quantity variance should be based on materials used, since this is monitoring the production efficiency.

Material Purchase Price Variance _______

Material Quantity Variance _________

2. Calculate the direct labor rate and efficiency variances.

Labor rate variance _______

Labor Efficiency variance ________

3. Variable manufacturing overhead spending and efficiency variances.

Variable overhead spending variance _______

Variable overhead efficiency variance _______

4. Fixed manufacturing overhead budget variance.

Fixed manufacturing overhead budget variance ______