Dart Company Developed the Following Standard Costs for Its Product $\bullet$

question 204

Essay

Dart Company developed the following standard costs for its product for 2016:
The company expected to work at the 120,000 direct labor hours level of activity and produce 60,000 units of product.
Actual results for 2016 were as follows:
$\bullet$ 56,800 units of product were actually produced.
$\bullet$ Direct labor costs were $1,092,000 for 112,000 direct labor hours actually worked.
$\bullet$ Actual direct materials purchased and used during the year cost $1,108,800 for 231,000 pounds.
$\bullet$ Total actual manufacturing overhead costs were $680,000.
Instructions
Compute the following variances for Dart Company for 2016 and indicate whether the variance is favorable or unfavorable.
1. Direct materials price variance.
2. Direct materials quantity variance.
3. Direct labor price variance.
4. Direct labor quantity variance.
5. Overhead controllable variance.
6. Overhead volume variance.

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Definitions:

Labor Law

governs the rights and obligations between workers and employers, dealing with issues such as workplace safety, wages, and labor unions.

Federal Law

Laws created by the federal government as opposed to state or local laws, governing nationwide issues.

FMLA

The Family and Medical Leave Act, a U.S. federal law that provides employees with unpaid, job-protected leave for certain family and medical reasons.

Anxiety Leave

A period of absence from work granted to an employee due to severe anxiety, considered under health or disability leave policies.