Assigbnment
Sixteen Company prepared the standard cost sheet.
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Direct materials: 25 yards at $6.00 per yard
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$120
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Direct labor: 28 hours at $5.00 per hour
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125
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Variable overhead: $3.00 per direct labor hour
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75
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Total variable costs per unit
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$320
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Fixed overhead: Applied at $1.00 per direct labor hour
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$14,400
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During November, Sixteen Company produced and sold 420 units. Actual results were as follows.
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Direct materials purchased and used
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9,500 yards at $6.15 per yard
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Direct labor
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12,600 hours at $5.10 per hour
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Variable overhead
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$45,000
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Fixed overhead
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$14,200
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Required
Question 1
Calculate the direct materials price variance and label it as either "favorable" or "unfavorable."
Question 2
Calculate the direct materials efficiency variance and label it as either "favorable" or "unfavorable."
Question 3
Calculate the direct labor price variance and label it as either "favorable" or "unfavorable."
Question 4
Calculate the direct labor efficiency variance and label it as either "favorable" or "unfavorable."
Question 5
Calculate the variable overhead price variance and label it as either "favorable" or "unfavorable."
Question 6
Calculate the variable overhead efficiency variance and label it as either "favorable" or "unfavorable."
Question 7
Calculate the fixed overhead price variance and label it as either "favorable" or "unfavorable."
Question 8
Calculate the fixed overhead volume variance and label it as either "favorable" or "unfavorable."