Manatee Corp Manatee Actually Produced 330,000 Units at 75% of Capacity and Level

question 155

Essay

Manatee Corp.has developed standard costs based on a predicted operating level of 352,000 units of production, which is 80% of capacity.Variable overhead is $281,600 at this level of activity, or $0.80 per unit.Fixed overhead is $440,000.The standard costs per unit are:
$\begin{array}{llcc} \text {Drrect materials(0.5lbs.@\$1/lb.)}& \text {\$0.50per unit}\\ \text {Directlabor (1 hour@, \$6/hour)}& \text {\$6.00per unit}\\ \text {Overhead (1hour@\$2.05/hour)} & \text { \$ 2.05 per unit}\\\end{array}$
Manatee actually produced 330,000 units at 75% of capacity and actual costs for the period were:
$$\begin{array} { l l } \text { Direct materials } ( 162,0001 b 5 ) & \$ 170,100 \\\text { Direct labor (329,500hours) } & \$ 2,042,900 \\\text { Fixed overhead } & \$ 438,000 \\\text { Variable overhead } & \$ 262,000\end{array}$$ Calculate the following variances and indicate whether each variance is favorable or unfavorable:
(1)Direct labor efficiency variance:
$__________________
(2)Direct materials price variance:
$__________________
(3)Controllable overhead variance:
$__________________

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