Reference no: EM132714790

Question - Corona Corp. has the following standards for one unit of product:

Direct Material: 80 pounds X $6 $480

Direct Labor: 3 hours X $16 per hour 48

Variable Overhead: 1.5 hours of machine time X $50 per hour 75

Fixed Overhead: 1.5 hours of machine time X $30 per hour 45

The predetermine OH rates were developed using a capacity of 6,000 units per year. Production to occur evenly throughout the year.

During October, the company produced 525 units. Actual data for October are as follows:

Direct Material Purchased 45,000 pounds X $5.92 per pound.

Direct Material Used: 43,020 pounds (all from the current purchases).

Total Labor cost $24,955 for 1,550 hours.

Variable overhead incurred: $43,750 for 800 hours of machine time.

Fixed overhead incurred: $22,800 for 800 hours of machine time.

Required -

a) Compute the material price variance based on quantity purchased?

b) Compute the material quantity variance?

c) Compute the labor price (rate) variance?

d) Compute the labor efficiency variance?

e) Compute the variable overhead spending variance?

f) Compute the variable overhead efficiency variance?