1. Variances

Our company makes childrens tables.

Standards: For each table it requires 7 pounds of plastic each and takes 1.5 hours of DL. The standard cost of plastic is $3 per pound. Our standard labor rate is $12 per hour and our variable overhead rate is $1.50 per hour.

Actuals: This month we made 2,000 tables. We purchased 20,000 pounds of plastic for $65,000. We used 15,700 pounds of plastic to make these tables. We paid our employees $36,800 to work 3,200 DLH. The actual costs for variable overhead was $5,600.

Calculate the following:

Material Price Variance

Material Quantity Variance

Labor Rate Variance

Labor Efficiency Variance

Variable Overhead Spending Variance

Variable Overhead Efficiency Variance