The Standards for One Case of Peardrax Are During the Week Ended June 7, the Following Activity Took

question 14

Essay

The standards for one case of Peardrax are:
$$\begin{array} { | l | l | } \hline \text { Direct materials } & 8 \text { lbs. } \$ \$ 3.50 / \mathrm { Ib } . \\\hline \text { Direct labor } & 4 \text { hrs. } \$ 15.00 / \mathrm { hr } \\\hline \text { Variable overhead (based on machine hours) } & 2 \text { hrs. } \$ \$ 5.00 / \mathrm { hr } . \\\hline\end{array}$$ During the week ended June 7, the following activity took place:
• 5,740 machine hours were worked;
• 22,600 lbs.of raw material were purchased for inventory at a total cost of $83,620;
• 2,700 cases of finished product were produced;
• 21,330 lbs.of raw material were used;
• 10,650 labor hours were worked at an average rate of $15.20 per hour;
• $27,552 actual variable overhead costs were incurred.
Calculate each of the following variances:
(a.) Price variance for raw materials purchased.
(b.) Raw materials usage variance.
(c.) Direct labor rate variance.
(d.) Direct labor efficiency variance
(e.) Variable overhead spending variance.
(f) Variable overhead efficiency variance

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Definitions:

Deep Brain Surgery

A medical procedure involving the brain, where surgery is performed on structures deep within the brain to treat neurological disorders.

FDA

The Food and Drug Administration (FDA) is a federal agency of the United States Department of Health and Human Services, responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, medical devices, and veterinary products.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by persistent patterns of inattention, hyperactivity, and impulsivity.

School-Aged Boys

Refers to male children typically between the ages of 6 and 18 who are attending elementary, middle, or high school.