Wangsgard Manufacturing has the following standard cost sheet for one of its product
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Materials, Labor, and Overhead Variances
Wangsgard Manufacturing has the following standard cost sheet for one of its products:
Direct materials (2 ft. @ $5)
$10
Direct labor (0.5 hr. @ $10)
5
Fixed overhead (0.5 hr. @ $2)*
1
Variable overhead (0.5 hr. @ $4)
2
Standard unit cost
$18
*Rate based on expected activity of 2,500 hours.
During the most recent year, the following actual results were recorded:
Production
Direct materials (11,750 ft. purchased and used) 6,000 units
$ 61,100
Direct labor (2,900 hrs.)
29,580
Fixed overhead
6,000
Variable overhead
10,500
Required
Compute the following variances:
1. Materials price and usage variances.
2. Labor rate and efficiency variances.
3. Variable overhead spending and efficiency variances.
4. Fixed overhead spending and volume variances.
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