Barker Production Company has developed the following
standards
for one of its products.
STANDARD VARIABLE COST CARD
One Unit of Product
Materials: 30 square feetAfA?A??cAf?cAc€A!A?¬Af?cAc‚¬ $5 per square foot $150.00
Direct labor: 16 hours $7 perh hour 112.00
Variable manufacturing overhead: 16 hours x$5 per hour 80.00
Total standard variable cost per unit $342.00
The company records materials price variances at the time of
purchase. The following activity occurred during the month
of
April:
Materials purchased: AfA?Ac€A! 80,000 sq. feet at $5.30 per
sq. foot
Materials used: 74,000 square feet
Units produced 2,500 units
Direct labor: AfA?Ac€A! 42,000 hours at $6.70 per hour
Required:
Prepare an excel spreadsheet that details the
following(
be sure to indicate Favorable or Unfavaorable):
a.Calculate the direct materials price variance
and
provide 1 possible cause of this variance.
b.Calculate the direct materials usage variance
and
provide 1 possible cause of this variance.
c.Calculate the direct labor rate variance and provide
1
possible cause of this variance.
d.Calculate the direct labor efficiency variance
and
provide one possible cause of this vaiance..