Managerial Accounting: P7-3A Gulf Coast Resins Company processes a base chemical

Managerial Accounting 
P7-3A Direct materials, direct labor, and factory overhead cost variance analysis 
Gulf Coast Resins Company processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 2,600 units of product were as follows: 
Standard Costs Actual Costs 
Direct materials 6,850 pounds at $6.40 7,000 pounds at $6.35 
Direct labor 2,050 hours at $19.80 2,100 hours at $20.20 
Factory overhead Rates per direct labor hour, 
based on 100% of normal 
capacity of 1,950 direct 
labor hours: 
Variable cost, $2.50 $4,970 variable cost 
Fixed cost, $4.50 $8,775 fixed cost 
Each unit requires 0.6 hour of direct labor. 

Instructions 
Determine (a) the price variance, quantity variance, and total direct materials cost variance; (b) the rate variance, time variance, and total direct labor cost variance; and (c) variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance.
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