1) What is the labor rate variance for March? (Indicate the effect of each varia

Question

1)  What is the labor rate variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values. Do not round intermediate calculations.)

2)  What is the labor efficiency variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values. Do not round intermediate calculations.)

3)  What is the labor spending variance for March? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values. Do not round intermediate calculations.)

4) What variable manufacturing overhead cost would be included in the company’s planning budget for March?

5)  What variable manufacturing overhead cost would be included in the company’s flexible budget for March?

6)  What is the variable overhead rate variance for March? (Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.)

7)  What is the variable overhead efficiency variance for March? (Do not round intermediate calculations. Round the actual overhead rate to two decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.)

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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: $ 32 32 Direct materials: 4 pounds at $8 per pound Direct labor: 2 hours at $16 per hour Variable overhead: 2 hours at $6 per hour12 Total standard cost per unit $ 76 The planning budget for March was based on producing and selling 32,000 units. However, during March the company actually produced and sold 37,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.40 per pound. All of this material was used in production b. Direct laborers worked 67,000 hours at a rate of $17 per hour. c. Total variable manufacturing overhead for the month was $422,100

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Parts No 4,5 Acutal Unit*Standard Cost per unit Standard Unit*Actual Cost per unit Actual Flexible Planning Units 37000 37000 32000 Direct Material 1184000 1184000 1024000 Direct Labor 1139000 1184000 985081 Variable Overhead 422100 444000 365059 Hours Rate Total Actual 67000 17 1139000 Standard 74000 16 1184000 Part-1 Labor Rate Varaince AH*(AP-SP) 67000*(17-16)=67000 U Part-2 Labor Efficiency Varaince SP*(AH-SH) 16*(67000-74000)=112000 F Part-3 Labor Spending Variance 1139000-1184000 45000 U Hours Rate Total Actual 67000 6.3 422100 Standard 74000 6 444000 Part-6 Labor Rate Varaince AH*(AP-SP) 67000*(6.3-6)=20100 U Part-7 Labor Efficiency Varaince SP*(AH-SH) 6*(67000-74000)=42000 F

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