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Working on ACCT homework and I am having trouble computing cost variances. Chillco Corporation produces containers of frozen food. During April. Chillco produced 755 cases
Working on ACCT homework and I am having trouble computing cost variances.
Chillco Corporation produces containers of frozen food. During April. Chillco produced 755 cases of food and incurred the following actual costs. Variable overhead $ 61398 Fixed overhead 121898 Actual labor cost (4,588 direct-labor hours) 76J958 Actual material cost (16,999 pounds purchased and used) 511298 Overhead is budgeted and applied using directlabor hours in a standard costing system. Standard cost and annual budget information are as follows: Standard Costs per Case Direct labor (5 hours at $16 per hour) $ 88.88 Direct material (28 pounds at $2.88 per pound) 56.88 Variable overhead (5 directilabor hours at $1.99 per hour) 9.58 Fixed overhead (5 direct-labor hours at $3 per hour) 15.88 Total $168.58 Annual Budget Information Variable overhead $ 95,999 Fixed overhead $159,999 Planned activity for year 59,999direct-labor hours Required: Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance}. Do not round intermediate calculations.) Required: Compute the following cost variances from the available data. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance}. Do not round intermediate calculations.) Directmaterial piice variance __ Directmaterial purchase price van'ance __ Directmaterial quantity variance __ Directlabor rate variance __ Directlabor efciency variance __ Variableoverhead spending variance __ Variableoverhead efficiency variance __ Fixedoverhead budget variance __ Fixedoverhead volume variance _ nfavorableStep by Step Solution
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