Garcia Company produces hockey helmets. The standard cost for each helmet is as follows: Per Helmet Direct material 5.0 lbs at $4.00/lb. $20.00 Direct labor 2.0 hrs @ $16.00/hr. $32.00 Overhead $10.00 During November, 2,000 helmets were produced. 10,600 lbs. of material were purchased and used during November, at a total cost of $44,520. Labor worked 3,870 hours at an hourly rate of $15.80. Actual overhead was $21,900. The overhead cost of $10.00 per helmet was determined using an estimated monthly fixed overhead of $13,200 and an estimated monthly volume of 2,200 helmets. The variable overhead per helmet is $4.00.
a. Calculate the material price variance.
b. Calculate the material quantity variance.
c. Calculate the labor rate variance.
d. Calculate the labor efficiency variance.
e. Calculate the overhead volume variance.
f. Calculate the controllable overhead variance.
g. What might be some possible reasons for the above variances? Material Variances Labor Variances Overhead Variances