Compute the fixed overhead spending and volume variances

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Reference no: EM13948438

Materials, Labor, and Overhead Variances

Wangsgard Manufacturing has the following standard cost sheet for one of its products:

Direct materials (2 ft. @ $5)	$10
Direct labor (0.5 hr. @ $10)	5
Fixed overhead (0.5 hr. @ $2)*	1
Variable overhead (0.5 hr. @ $4)	2
Standard unit cost	$18

*Rate based on expected activity of 2,500 hours.

During the most recent year, the following actual results were recorded:

Production Direct materials (11,750 ft. purchased and used)	6,000 units $ 61,100
Direct labor (2,900 hrs.)	29,580
Fixed overhead	6,000
Variable overhead	10,500

Required

Compute the following variances:

1. Materials price and usage variances.

2. Labor rate and efficiency variances.

3. Variable overhead spending and efficiency variances.

4. Fixed overhead spending and volume variances.

Reference no: EM13948438

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