The Standards for One Case of Peardrax Are

question 34

Essay

The standards for one case of Peardrax are:
During the week ended June 7, the following activity took place:
• 5,740 machine hours were worked;
• 22,600 lbs. of raw material were purchased for inventory at a total cost of $83,620;
• 2,700 cases of finished product were produced;
• 21,330 lbs. of raw material were used;
• 10,650 labor hours were worked at an average rate of $15.20 per hour;
• $27,552 actual variable overhead costs were incurred.Calculate each of the following variances:
(a.) Price variance for raw materials purchased.(b.) Raw materials usage variance.(c.) Direct labor rate variance.(d.) Direct labor efficiency variance.(e.) Variable overhead spending variance.(f.) Variable overhead efficiency variance.