Hello,The standards for one case of liquid weed killer are as follows:Direct materials7 lbs@$8.25 pr/lbDirect labor4 hours@$17.6/hrVariable overhead (based on machine hours)1.3 hr@$6.05/hrDuring the week ending May 6, the following activity took place5,632 machine hours were worked32,239 lb of raw material were purchased for inventory at a total cost of $271,452.4,560 cases of finished product were produced.31,755 lb. of raw material were used.17,839 labor hours were worked at an average rate of $17.88 per hour.$32,891 actual variable overhead costs were incurred.Calculate each of the following variances:  Do not round intermediate calculations.Raw materials usage variance???Direct labor rate variance???Direct labor efficiency variance???Variable overhead spending variance???Variable overhead efficency variance???Thanks...

Question
Asked Apr 11, 2019
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Hello,

The standards for one case of liquid weed killer are as follows:

Direct materials

7 lbs

@$8.25 pr/lb

Direct labor

4 hours

@$17.6/hr

Variable overhead (based on machine hours)

1.3 hr

@$6.05/hr

During the week ending May 6, the following activity took place

5,632 machine hours were worked

32,239 lb of raw material were purchased for inventory at a total cost of $271,452.

4,560 cases of finished product were produced.

31,755 lb. of raw material were used.

17,839 labor hours were worked at an average rate of $17.88 per hour.

$32,891 actual variable overhead costs were incurred.

Calculate each of the following variances:  Do not round intermediate calculations.

Raw materials usage variance

???

Direct labor rate variance

???

Direct labor efficiency variance

???

Variable overhead spending variance

???

Variable overhead efficency variance

???

Thanks...

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Expert Answer

Step 1

Calculate raw material usage variance:

 

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Step 2

Calculate direct labor rate variance:

 

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Step 3

Calculate direct labor efficienc...

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