Problem - Show all calculations, Need help calculating the following variances for 2017 for the Company.
A Company manufactures toys. It has developed the following per unit standard costs for 2017 for each blender:
Direct Materials Direct Labor Manufacturing Overhead
Standard Quantity 2 Pounds [steel] 1/2 hour 1/2 hour
Standard Price $5.00 $12.00 $6.00
Unit Standard Cost $10.00 $6.00 $3.00
In 2017, the company planned to produce 80,000 toys at a level of 40,000 hours of direct labor.
Actual results for 2012 are presented below:
1. Direct materials purchases were 154,000 pounds of steel which cost $239,200. All of the materials were used in production.
2. Direct labor costs were $428,925 for 39,100 direct labor hours actually worked.
3. Total manufacturing overhead was $235,000.
4. Actual production was 25,000 toys.
Instructions - Calculate the following variances for 2017 for the Company.
[a] Total materials variance
[b] Materials price variance
[c] Materials quantity variance
[d] Total labor variance
[e] Labor price variance
[f] Labor quantity variance
[g] Total overhead variance