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Walthaus Corporation's standard cost sheet is as follows: Direct material 4 feet at $5.00 per foot Direct labor 3 hours at $10.00 per hour Variable
Walthaus Corporation's standard cost sheet is as follows:
Direct material | 4 feet at $5.00 per foot |
Direct labor | 3 hours at $10.00 per hour |
Variable overhead | 3 hours at $2.00 per hour |
Fixed overhead | 3 hours at $1.00 per hour |
Additional information:
- Actual results: purchased 30,000 lbs of material at $5.25 per lb. (there were no beginning or ending material inventories); direct labor cost incurred was 26,000 hours at $9.75 per hour; actual variable overhead incurred, $50,000; and actual fixed overhead incurred $43,000.
- Overhead is applied to work-in-process on the basis of direct labor hours.
- The company produced 8,000 units of product during the period.
- The number of estimated hours for computing the fixed overhead application rate totaled 45,000 hours.
What are the material price and efficiency variances?
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