The standards for one case of liquid wed killer are:

During the week ended August 6, the following activity took place:

• 2,390 machine hours were worked.
• 11,400 lbs. of raw material were purchased for inventory at a total cost of $70,680.
• 3,800 cases of finished product were produced and:
• 11,290 lbs. of raw material were used.
• 6,720 labor hours were worked at an average rate of $12.25 per hour.
• $8,126 actual variable overhead costs were incurred.
  
  Instructions:
  A. Please proceed to the "Analysis" worksheet and complete the basic problem requirements. Complete the problem requirements by entering appropriate amounts or formulas in shaded worksheet cells:
  Calculate each of the following variances, and provide plausible explanations for the results:
  a. Price variance for raw material purchased.
  b. Raw materials usage variance.
  c. Direct labor rate variance.
  d. Direct labor efficiency variance.
  e. Variable overhead spending variance.
  f. Variable overhead efficiency variance.
  B. After completing the "Analysis" worksheet, please proceed to the "What the Numbers Mean" worksheet and respond to the additional requirements presented.
  1. What does it mean?
  2. What does it mean?
  3. What does it mean?

Transcribed Image Text:

Ouantity Price Direct materials Direct labor Variable overhead (based on machine hours) 0.6 hrs S 3.50 /hr 3 bs. S 6.00/1b. 1.8 hrs S 12.00 /hr