Reference no: EM133017501

Question -

1. Direct materials variances - Yealink Company produces a product that requires 3.0 standard pounds per unit. The standard price is $7.50 per pound. If 30,000 units used 72,000 pounds, which were purchased at $8.00 per pound, what is the direct materials (A) price variance, (B) quantity variance, and (C) cost variance?

2. Direct labor variances - Yealink Company produces a product that requires 2.5 standard direct labor hours per unit at a standard hourly rate of $10 per hour. If 7,500 units used 30,900 hours at an hourly rate of $9.90 per hour, what is the direct labor (A) rate variance, (B) time variance, and (C) cost variance?

3. Factory overhead controllable variance - Yealink Company produced 7,500 units of product that required 2 standard direct labor hours per unit. The standard variable overhead cost per unit is $0.45 per direct labor hour. The actual variable factory overhead was $26,385. Determine the variable factory overhead controllable variance.

4. Factory overhead volume variance - Yealink Company produced 7,500 units of product that required 2 standard direct labor hours per unit. The standard fixed overhead cost per unit is $0.575 per direct labor hour at 29,000 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance.