Would like to know if my answers are correct, and if not please show work on how

Question

Would like to know if my answers are correct, and if not please show work on how to solve.

Variance Analysis Practice Problem 1 The Beakins Company manufactures banners for sports teams (ex., NCAA tournament championship banners). The standard cost card for a banner is: Standard Price Total/unit $20 Direct Material Direct Labor Variable Overhead Fixed Overhead 4 yards 1.5 hours 1.5 hours 1.5 hours $5 per yard $10 per hour $4 per DLH $6 per DLH 6 Fixed and variable overhead is applied on the basis of direct labor hours. Estimated activity for the year was 24,000 direct labor hours. During the month of March the company produced 1,.200 banners. Actual costs were: Direct materials purchased (6,000 yards) Direct materials used in production Direct labor cost incurred (2,100 DLH) Variable overhead costs incurred Fixed overhead costs incurred $28,500 5,000 yards $17,850 $10,080 $11,000 What was the direct materials price variance for March? G000 6,000.5 ot 28,50030000 ,600 F hat was the direct materials quantity variance for March? (AG SP) (SQ SP) G000.5) (41200.u)() 30,00 ,000 o, 000 What was the direct labor rate variance for March? (AH AR) (AH-SR) 11850 (2,100.10) 11,850, 21,000 What was the dfrect (AQ SP)-(SQ SP) 2.1,0 What was the variable overhead spending variance for March? 3,150 labor efficiency variance for March? 2100. 10) (au00.10) 24 000 $3,000 AG BR AQ) (AQ SP) 10,080 (1.6x 2,I00 (u) 101080. What was the variable overhead efficiency variance for March? (AG SP)-(5Q SP) 15,o0 10-1 (1,200) 1,200 12,Goo (5,400 U

Explanation / Answer

Solution:

Standard qty of material (SQ) = 1200*4 = 4800 yards

Standard price of material (SP) = $5

Actual qty of material used in production (AQ) = 5000 yards

Actual price of material (AP) = $28,500 / 6000 = $4.75

Direct material price variance = (SP - AP)* AQ = ($5 - $4.75) * 6000 = $1,500 F

Direct material qty variance = (SQ - AQ)*SP = (4800 - 5000)* $5 = $1,000U

Standard hours of labor (SH) = 1200*1.50 = 1800 hours

Standard rate of labor (SR) = $10

Actual hours of labor (AH) = 2100 hours

Actual rate of labor (AR) = $17,850 / 2100 = $8.50 per hour

Direct Labor Rate Variance = (SR - AR)* AH = ($10 - $8.50) * 2100 = $3,150 F

Direct labor efficiency variance = (SH - AH)*SR = (1800 - 2100)* $10 = $3,000 U

Standard hours of labor (SH) = 1200*1.50 = 1800 hours

Standard rate of variable overhead (SR) = $4 per hour

Actual hours of labor (AH) = 2100 hours

Actual rate of variable overhead (AR) = $10,080 / 2100 = $4.80 per hour

Variable overhead spending Variance = (SR - AR)* AH = ($4 - $4.80) * 2100 = $1,680 U

Variable Overhead efficiency variance = (SH - AH)*SR = (1800 - 2100)* $4 = $1,200 U

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