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Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job

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"Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good
job in controlling costs as well," said Kim Clark, president of Martell Company. "Our $41,000 overall manufacturing cost variance is only
2.5% of the $1,640,000 standard cost of products made during the year. That's well within the 3% parameter set by management for
acceptable variances. It looks like everyone will be in line for a bonus this year."
The company produces and sells a single product with a standard cost card as follows:
The following additional information is available for the year just completed:
a. The company manufactured 20,000 units during the year.
b. A total of 77,000 feet of material was purchased during the year at a cost of $4.70 per foot. All of this material was used to
manufacture the 20,000 units produced. There were no beginning or ending inventories.
c. The company worked 34,000 direct labor-hours at a direct labor cost of $13.80 per hour.
d. Overhead is applied to products based on standard direct labor-hours. Data relating to manufacturing overhead costs follow:
Required:
Compute the materials price and quantity variances.
Compute the labor rate and efficiency variances.
For manufacturing overhead compute:
a. The variable overhead rate and efficiency variances.
b. The fixed overhead budget and volume variances.
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