Lubbock Company Has Made the Following Information Available for Its

question 173

Essay

Lubbock Company has made the following information available for its production facility for the current month.Fixed overhead was estimated at 22,000 machine hours for the production cycle.Actual machine hours for the period were 22,500;4,200 units were produced.
$\begin{array}{ll}\text { Material purchased(107,000 pieces) } & \$ 529,650 \\\text { Material quantity variance } & \$ 7,000 & U \\\text { Machine hours used ( } 22,500 \text { hours) } & \\\text { VOH spendingvariance } & \$ 1,00 \\\text { Actual fixed overhead } & \$ 81,000 \\\text { Actual labor cost } & 60,300 \\\text { Actuallabor hours } & \$ 8,500\end{array}$
Lubbock Company's standard costs are as follows:
$\begin{array}{ll}\text { Direct material } & 25 \text { pieces@\$5 per piece } \\\begin{array}{l}\text { Direct labor } \\\text { Variable overhead } \\\text { (applied on a machine hour basis) }\end{array} & 2.0 \text { hours@ } \$ 7 \text { per hour } \\\begin{aligned}\text { Fixed overhead } \\\text { (applied on a machine hour basis) }\end{aligned} & 5.2 \text { hours@ } \$ 3.00 \text { per hou } \\& 5.2 \text { hours@ } \$ 3.50 \text { per hou }\end{array}$

Determine the following items:
a. material purchase price variance
b. standard quantity allowed for material
c. total standard cost of material allowed
d. actual quantity of material used.
e. labor rate variance
f. standard hours allowe for labor
g. total standard cost of labor allowed
h. labor efficiency variance
i. actual variable overhead incured
j. standard machine hours allowed.
k. variable overhead efficiency variance
l. budgeted fixed overhead
m. applied fixed overhead
n. fixed overhead spending variance
o. volume variance
p. total overhead variance

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