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Theodore Company is engage in the business of seasonal tree-spraying and uses chemicals in its operations to prevent disease and bug-infestation. Employees received wages of

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Theodore Company is engage in the business of seasonal tree-spraying and uses chemicals in its operations to prevent disease and bug-infestation. Employees received wages of $10 per hour. The direct manufacturing labor efficiency variance represents the difference between the actual time consumed in spraying a tree and the standard time allowed for the height of the tree (specified in feet), multiplied by the $10 standard hourly wage rate. For budgeting purposes, there is a standard allowance of one hour per customer for travel, setup. and clearup time. However, since several factors are uncontrollable by the employee, this one-hour budget allowance is excluded from the calculation of the direct manufacturing labor efficiency variance. Employees are responsible for keeping their own daily time-cards. Chemical usage should vary directly with the tree-footage sprayed. Variable overhead includes costs that vary directly with the number of customers, as well as costs that vary according to tree-footage sprayed. Customers pay a service charged of $10 per visit and $1 per tree-foot sprayed The standard static budget and actual results for June are as follows: Actual Static Results Budget 1,900 18,000 19,900 2,700 2,000 (200 customers) (20,000 feet) Service calls (190 customers) Footage sprayed (18,000 feet) Total revenues 20,000 $ 22,000 4,000 (2,000 gallons) Chemicals (900 gallons) Direct manufacturing labor: Travel, setup, clearup) (190 hours) Tree-spraying (900 hrs) (300 hours (800 hours) 3,000 8,000 1,900 9,000 Overhead: Variable based on number of 950 customers Variable-based on footage 1,800 2,000 4.750 18,350 Fixed 6,000 21,000 $ Total overhead Total cost 1,000 Gross profit before bonus 1,550 Required: Compute the following for June: Direct materials price variance. $2 Direct materials usage (efficiency) variance 3. Direct manufacturing labor travel, setup, and clearup variance. $4 Direct manufacturing labor efficiency variance. Overhead spending (flexible budget) variance

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