Silmon Corporation makes a product with the following standard costs:
| Inputs | Standard Quantity or Hours |
Standard Price or Rate |
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| Direct materials | 4.7 | grams | $ | 6.00 | per gram |
| Direct labor | 0.4 | hours | $ | 13.00 | per hour |
| Variable overhead | 0.4 | hours | $ | 3.00 | per hour |
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In June the company produced 5,200 units using 25,690 grams of the direct material and 2,560 direct labor hours. During the month the company purchased 25,100 grams of the direct material at a price of $5.80 per gram. If materials used are more than the materials purchased, the additional amount is taken from inventory. The actual direct labor rate was $13.60 per hour and the actual variable overhead rate was $2.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor hours. |
| Required: |
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Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.) |
| a. | Direct materials quantity variance | $ | (Click to select) F U None |
| b. | Direct materials price variance | $ | (Click to select) F U None |
| c. | Direct labor efficiency variance | $ | (Click to select) F U None |
| e. | Direct labor rate variance | $ | (Click to select) F U None |
| d. | Variable overhead efficiency variance | $ | (Click to select) F U None |
| f. | Variable overhead rate variance | $ | (Click to select) F U None |