Bullseye Company manufactures dartboards. Its standard cost information follows:

Question

Bullseye Company manufactures dartboards. Its standard cost information follows: 1hs 15.00 per he overhead (baned h$0.30 per Fxed manufacturing oveead(539 000 Bullseye has the following actual results for the month of September houes woned Required: 1. Calculate the direct materials price, quantity, and total spending variances for Bullseye. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) 2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.(Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) 3. Calculate the variable overhead rate, efficiency, and total spending variances for Bullseye. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorablelOverapplied and "U for unfavorablelunderapplied.)

Explanation / Answer

Standard Actual Particulars Qty/ hours Rate amount Qty/ hours Rate amount Materials         480,000.00                      2.20      1,056,000.00         490,000.00                      2.10      1,029,000.00 Labour         240,000.00               15.0000      3,600,000.00         248,000.00                    14.10      3,496,800.00 Overhead         240,000.00                  0.3000            72,000.00         248,000.00                  0.2823            70,000.00 Actual output         240,000.00 Materials reqd (240000 * 2)         480,000.00 Labour hrs reqd (240000 * 1)         240,000.00 DMPV = (SP-AP)*AQ purchased DMPV = (2.20 - 2.10)490,000 DMPV = 49000 F DMQV= (SQ-AQ)SP DMQV= (480,000 - 490,000)2.20 DMQV= 22,000 U Direct Material Spending variance = 1056,000 - 1029,000 Direct Material Spending variance = 27,000 F DLRV= (SR-AR)AH DLRV= (15 - 14.10)248,000 DLRV= 223,200 F DLEV = (SH-AH)SR DLEV = (240,000 - 248,000)15 DLEV = 120,000 U Direct Labour spending variance = 3600,000 - 3496,800 Direct Labour spending variance = 103,200 VORV = (SR-AR)AH VORV = (.30 - .2823)248,000 VORV = 4,400 F VOEV = (SH-AH)SR VOEV = (240,000 - 248,000).30 VOEV = 2,400 U Variable overhead spending variance = 72,000 - 70,000 Variable overhead spending variance = 2000 F

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