Walton Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles:

Amount of direct materials per candle		1.80	pounds
Price of direct materials per pound	$	0.50
Quantity of labor per unit		1.10	hours
Price of direct labor per hour	$	7.80	/hour
Total budgeted fixed overhead	$	123,200

During 2017, Walton planned to produce 28,000 drip candles. Production lagged behind expectations, and it actually produced only 22,000 drip candles. At year-end, direct materials purchased and used amounted to 40,900 pounds at a unit price of $0.44 per pound. Direct labor costs were actually $7.30 per hour and 27,100 actual hours were worked to produce the drip candles. Overhead for the year actually amounted to $103,400. Overhead is applied to products using a predetermined overhead rate based on estimated units.

Required

a.&b. Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip candle.

c.&d. Compute the actual cost per candle for direct materials, direct labor, overhead and also the total actual cost per candle.

e. Compute the price and usage variances for direct materials and direct labor.

f. Compute the fixed cost spending and volume variances.

mplete this question by entering your answers in the tabs below.

Req A and B

Req C and D

Req E

Req F

Compute the fixed cost spending and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Complete this question by entering your answers in the tabs below.

Req A and B

Req C and D

Req E

Req F

Compute the price and usage variances for direct materials and direct labor. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Complete this question by entering your answers in the tabs below.

Req A and B

Req C and D

Req E

Req F

Compute the price and usage variances for direct materials and direct labor. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

a and b

cost standard cost per unit

direct material

direct labor

overhead

total per candle.

Cost	Variance
Direct materials:
Price variance	$2,454	F
Usage variance		U
Direct labor:
Price variance	$13,550	F
Usage variance	27100-	U

Req C an

Cost	Variance
Direct materials:
Price variance	$2,454	F
Usage variance		U
Direct labor:
Price variance	$13,550	F
Usage variance	27100-	U

Req C an

Fixed MOH cost	Variance
Spending variance
Volume variance