Reference no: EM132318537
Exercise
Crane Construction Consultants performs cement core tests in its Greenville laboratory. The following standard costs for the tests have been developed by the company's controller, Landon Crane, based on performing 2,100 core tests per month.
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Standard Price
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Standard
Quantity
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Standard
Cost
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Direct materials
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$0.50 per pound
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5 pounds
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$2.50
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Direct labor
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$11 per DLH
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0.50 DLH
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5.50
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Variable overhead
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$9 per DLH
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0.50 DLH
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4.50
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Fixed overhead
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$16 per DLH
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1 DLH
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16.00
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Total standard cost per test
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$28.50
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At the end of March, London reported the following operational results:
• The company actually performed 2,280 core tests during the month.
• 8,600 pounds of direct materials were purchased during the month at a total cost of $5,700.
• 6,500 pounds of direct materials were used to conduct the core tests.
• 860 direct labor hours were worked at a total cost of $9,830.
• Actual variable overhead was $8,000.
• Actual fixed overhead was $15,800.
(a) Calculate the direct materials price variance for March.
(b) Calculate the direct materials quantity variance for March.
(c) Calculate the direct labor rate variance for March.
(d) Calculate the direct labor efficiency variance for March.
(e) Calculate the variable overhead spending variance for March.
(f) Calculate the variable overhead efficiency variance for March.
(g) Calculate the fixed overhead spending variance for March.