Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2012.
- Cost and Production Data Actual Standard
- Raw materials unit cost $2.25 $2.00
- Raw materials units used 10,600 10,000
- Direct labor payroll $122,400 $120,000
- Direct labor hours worked 14,400 15,000
- Manufacturing overhead incurred $184,500
- Manufacturing overhead applied $189,000
- Machine hours expected to be used at normal capacity 42,500
- Budgeted fixed overhead for June $51,000
- Variable overhead rate per hour $3.00
- Fixed overhead rate per hour $1.20
Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $400,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.
- Compute all of the variances for (1) direct materials and (2) direct labor.
- Total materials variance $ UnfavorableFavorable
- Materials price variance $ FavorableUnfavorable
- Materials quantity variance $FavorableUnfavorable
- Total labor variance $ UnfavorableFavorable
- Labor price variance $ UnfavorableFavorable
- Labor quantity variance $ FavorableUnfavorable