Beluga Corp Beluga Actually Produced 330,000 Units at 75% of Capacity and Operating

question 195

Essay

Beluga 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:
$\begin{array}{llr} \text { Direct materials (0.5 lbs. @ \$1/1b.) } & \text { \$0.50 per unit } \\ \text { Direct labor (1 hour@\$6/hour)} & \text { \$6.00 per unit } \\ \text { Overhead (1 hour @\$2.05/hour) } & \text { \$2.05 per unit } \end{array}$

Beluga actually produced 330,000 units at 75% of capacity and actual costs for the period were:
$\begin{array}{|l|c|}\hline \text { Direct materials }(162,00 & \$ 170,100 \\\hline \text { Direct labor }(329,500 \text { hours) .............. } & \$ 2,042,900 \\\hline \text { Fixed overhead } & \$ 438,000 \\\hline\text { Variable overhead } & \$262,0000 \\\hline\end{array}$ 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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Definitions:

Thematic Apperception Test

A projective psychological test that involves presenting individuals with ambiguous scenes and asking them to make up stories about them, used to assess their underlying thoughts, feelings, and themes.

Ambiguous Pictures

Images that can be interpreted in multiple ways due to their vague or unclear content.

Psychological Problems

Psychological problems encompass a range of mental health conditions that affect mood, thinking, and behavior.

Projective Tests

Psychological assessments where participants interpret ambiguous stimuli, revealing unconscious desires and feelings.