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Gulf Coast Resins Company processes a base chemical into plastic. Standard costs and actual cost for direct materials, direct labor, and factory overhead incurred for the manufacture of 2,600 units of product were as follows:
Standard ActualDirect materials 6850 lbs at 6.40 7000 lbs at 6.35Direct labor 2050 hrs at 19.80 2100 hrs at 20.20Factory overhead rates per direct labor hoursbased on 100% of normal capacityof 1950 direct labor hours:variable cost 2.50 4970 variable costfixed cost 4.50 8775 fixed costEach unit requites 0.6 hour of direct labor
Determine A. The price variance, quantity variance, and total direct materials cost variance. B. the rate variance, time variance, and total direct labor cost variance. and C. Variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance.
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