Managerial Accounting: P22-3B Eastern Polymers, Inc., processes a base chemical into plastic

Managerial Accounting 
P22-3B Direct materials, direct labor and factory overhead cost variance analysis 
Eastern Polymers, Inc., processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,600 units of product were as follows: 
Standard Costs Actual Costs
Direct materials 7,800 lbs. at $6.10 7,700 lbs. at $5.90
Direct labor 1,400 hrs. at $17.60 1,430 hrs. at $17.80
Factory overhead Rates per direct labor hr., 
based on 100% of normal 
capacity of 1,460 direct 
labor hrs.: 
Variable cost, $4.20 $5,820 variable cost
Fixed cost, $6.60 $9,636 fixed cost

Each unit requires 0.25 hour of direct labor. 

Required: 
a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 
b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 
c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
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