Problem: Textileexpress
At the start of 2012, Textile Express Company determined its standard labor cost to be 2.5 hours per unit at $23.90 per hour. The budget for variable overhead was $9 per unit, and budgeted fixed overhead was $15,000 for the year. Expected annual production was 5,000 units. During 2012, the actual cost of labor was $24.30 per hour. Textile Express produced 4,880 units requiring 11,700 direct labor hours. Actual overhead for the year was $48,840.
Calculate labor rate and efficiency variances and the controllable overhead variance and the overhead volume variance. (Round calculations to 2 decimal places, e.g. 25.21 and the final answers to 0 decimal places, e.g. 5,250. For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)
Labor Rate Variance $
Labor Efficiency Variance $
Controllable Overhead Variance $
Overhead Volume Variance $
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.