Reference no: EM132715071

The standard cost sheet for Chambers Company, which manufactures one product, follows:

Direct materials, 40 yards at $2.00 per yard $80

Direct labor, 5 hours at $20 per hour 100

Factory overhead applied at 80% of direct labor 80 (variable costs = $60; fixed costs = $20)

Variable selling and administrative 64

Fixed selling and administrative 40

Total unit costs$364

Standards have been computed based on a master budget activity level of 28,800 direct labor-hours per month. Actual activity for the past month was as follows:

Materials used 228,000yards at $2.05 per yard

Direct labor 25,200hours at $20.40 per hour

Total factory overhead$444,000

Production 5,000units

Required:

Problem 1: Prepare variance analyses for the variable and fixed costs. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)