Manatee Corp

question 63

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:
Manatee actually produced 330,000 units at 75% of capacity and actual costs for the period were:

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:

Identical Scores

When two or more assessments yield the exact same numerical results or ratings, indicating similar levels of performance or condition.

Intelligence Test

A method of assessing an individual's mental aptitudes and comparing them with others using numerical scores.

Deviation Intelligence Quotient

An intelligence score derived from standard deviation units from the mean in an intelligence test, indicating the extent to which an individual deviates from the average IQ score.

David Wechsler

A psychologist best known for developing several widely used intelligence tests, including the Wechsler Adult Intelligence Scale.