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The standard cost sheet for Chambers Company, which manufactures one product, follows: S 100 80 64 Direct materials, 50 yards at $2.00 per yard Direct
The standard cost sheet for Chambers Company, which manufactures one product, follows: S 100 80 64 Direct materials, 50 yards at $2.00 per yard Direct labor, 4 hours at $20 per hour Factory overhead applied at 80% of direct labor (variable costs $45; fixed costs = $19) Variable selling and administrative Fixed selling and administrative 79 Total unit costs S 378 Standards have been computed based on a master budget activity level of 30,300 direct labor-hours per month. Actual activity for the past month was as follows: Materials used Direct labor Total factory overhead Production 350,000 yards at $2.10 per yard 29,500 hours at $20.80 per hour $500,000 6,900 units Required Prepare variance analyses for the variable and fixed costs. Materials are purchased as they are used. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.) Price variance Efficiency variance t labor Price variance Efficiency variance Variable overhead: Efficiency variance Production volume variance
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