Standard Costs - Overhead Analysis At the beginning of 2015, Trouble Company ado

Question

Standard Costs - Overhead Analysis

At the beginning of 2015, Trouble Company adopted the following standard:

Normal volume per month is 40,000 standard labor hours. Trouble's January 2015 budget was based on normal volume. During January Trouble Company produced 7,700 units, with the following actual data:

REQUIRED: For the month of January 2015, determine the followign variances. Indicate whether each variance is favorable or unfavorable. Use the template below to solve the problem:

1. Direct materials price variance:

2. Direct materials usage variance

3. Direct labor rate variance

4. Direct labor efficiency variance

Input Total Direct materials 3 lbs. @ $2.50 per lb. $7.50 Direct labor 4 hrs. @ $9.25 per hour 37.00 Factory overhead: Variable $3.00 per direct labor 15.00 Fixed $4.00 per direct labor 20.00 Standard cost per unit $79.50

Explanation / Answer

Standard Costs - Overhead Analysis At the beginning of 2015, Trouble Company ado

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