Thompson Company uses a standard cost system for its single product. The following data are available:
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Actual experience for the current year: |
| Purchases of raw materials (12,000 yards at $12.00 per yard) | $ | 144,000 | |
| Raw materials used | 19,000 | yards | |
| Direct labor costs (10,100 hours at $9.00 per hour) | $ | 90,900 | |
| Actual variable overhead cost | $ | 84,020 | |
| Units produced | 12,500 | units | |
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Standards per unit of product: |
| Raw materials | 1.8 yards at $14.00 per yard |
| Direct labor | .8 hours at $8.50 per hour |
| Variable overhead | $7.00 per direct labor hour |
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| Required: | |
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Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.) |
| a. | Direct materials price variance | $ | |
| b. | Direct materials quantity variance | $ | |
| c. | Direct labor rate variance | $ | |
| d. | Direct labor efficiency variance | $ | |
| e. | Variable overhead rate variance | $ | |
| f. | Variable overhead efficiency variance | $ |