Question:
Variance Computations with Missing Data
The following information is provided to assist you in evaluating the performance of the production operations of Studio Company:
|
Units produced (actual)
|
42,000
|
|
Master production budget
|
|
|
Direct materials
|
$132,000
|
|
Direct labor
|
112,000
|
|
Overhead
|
159,200
|
|
Standard costs per unit
|
|
|
Direct materials
|
$1.65 x 2 gallons per unit of output
|
|
Direct labor
|
$14 per hour x 0.2 hour per unit
|
|
Variable overhead
|
$11.90 per direct labor-hour
|
|
Actual costs
|
|
|
Direct materials purchased and used
|
$150,960 (81,600 gallons)
|
|
Direct labor
|
111,708 (8,560 hours)
|
|
Overhead
|
163,200 (61% is variable)
|
Variable overhead is applied on the basis of direct labor-hours.
Required
Prepare a report that shows all variable production cost price and efficiency variances and fixed production cost price and production volume variances.