Variable and fixed overhead are applied based on Direct Labor HoursStandards

 

Material: 2.5 pounds per unit @$4.2 per pound

 

Labor: 2 hours per unit @$9.5 per hour

 

Variable OH: 2 hours per unit @$3 per hour

 

Fixed OH: 2 hours per unit @$3.5 per hour

 

based on budgeted production of2,700 unitsActuals

 

Production: 3,000 units produced during the month

 

Material: 8,200 pounds purchased and used @ $3.85 per pound

 

Labor: 6,300 direct labor hours @ $10 per hour

 

Variable OH: $21,450

 

Fixed OH: $19,450

 

1.what is Material price variance?

 

2. what is Material usage (quantity) variance?

 

3. what is Labor rate variance?

 

4. Define Labor efficiency variance.

 

5. what will be Variable overhead spending variance?

 

6. what will be Variable overhead usage variance?

 

7.what will be Fixed overhead spending variane?

 

8.what will be Fixed overhead volume variance?