The total actual variable overhead costs were $650,000 and the total actual fixed overhead costs were $700,000 (all paid in cash). 74,000 machine hours were used.

160,000 direct labor hours were incurred and the actual labor rate paid was $17.50 per direct labor hour.

(1) Now that the variances have been computed, what should the factory manager do next? (2) Why is the fixed overhead volume variance referred to as "non-controllable"? (3) List two advantages of standard costing.

Actual production is 18,000 units. 110,000 pounds of material were purchased for $5.80 per pound. 94,000 pounds of material were used in production With the information provided: A. Prepare an eight production variance B. Provide all standard costing journal entries Standard Costing: Use the additional following informatio: Shepherd Company has established the following standards for the production of its finished units: Direct Materials (5 lbs per unit a $6.00 per lb) Direct Labor (9 dl hrs per unit a $16 per dl hr) Variable Overhead (4 machine hrs per unit a S9 per mach 3.00 Fixed Overhead (4 machine hrs per unit S11 per mach h44.00 S 30.00 44.00 Total Standard Cost of one Finished Unit 254.00 *the fixed overhead rate was based on a budgeted production level of 16,000 units) You will compute the 8 production cost variances and you will be asked for the standard costing journal entries. When you make your journal entries, be sure to include the account name and dollar amount and be sure it is clear which account is to be debited and credited. I would suggest the following format, for example for the collection of accounts receivable: Debit Cash $1,000 Credit Accounts Receivable $1,000