Compute the following variances indicate whether each

Reference no: EM13482070

Livingston Corporation recently implemented a standard cost system. The company's cost accountant has provided the following data to perform a variance analysis for May:

Standard Cost Information
Direct Material Standard Price	$12 Per pound
Standard Quantity Allowed Per Unit	4 pounds per unit
Direct Labor Standard Rate	$7 per hour
Standard Hours allowed Per Unit	0.5 hours per unit
Fixed Overhead Budgeted	$24,000 per month
Normal Level of Production	12,000 units per month
Variable Overhead Application Rate	$1.80 per unit
Fixed Overhead Application Rate
($24,000/12,000units)	$2.00 per unit
Total Overhead Application Rate	3.80 per unit

Actual Cost Information
Cost of Material Purchased & Used	$429,000
Pounds of material Purchased & Used	39,000 pounds
Cost of Direct Labor	$23,100
Hours of Direct Labor	4,200 hours
Cost of Variable Overhead	$17,750
Cost of Fixed Overhead	$24,200
Actual Volume of Production	10,400 units

Compute the following variances. Indicate whether each variance is favorable (F) or unfavorable (U):

(a) Materials price variance: $__________

(b) Materials quantity variance: $__________

(d) Laborefficiency variance: $__________

(e) Overhead spending variance: $__________

(f) Overhead volume variance: $__________

Reference no: EM13482070

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