At the beginning of 2012,DDC budgeted annual production of 400000 doorknobs and adopted the dollowing standards for each doorknob:
Input Cost per doorknob
Direct materials(brass) 0.3 lb.@$10/lb $3.00
Direct manufacturing labor 1.2 hours@$20/hour 24.00
Manufacturing overhead:
Variable $6/kg*0.3 kg 1.80
Fixed $15/kg.*0.3 kg 4.50
Standard cost per doorknob $33.30
.Actual results for April 2012 were :
Production 35000 doorknobs
Direct materials purchased 12000 lb. at $11/kg
Direct material used 10450 kg
Direct manufacturing labor 38500 hours for $808500
Variable manufacuting overhead $64150
Fixed manufacturing overhead $152000
Required
For the month of April, compute the following variances, indicating whether each is favorable(F) or unfavorable(U):
Direct materials price variance(based of purchases)
Direct materials efficiency variance
Direct manufacturing labor price variance
Direct manufacturing labor efficiency variance
Fixed manufacturing overhead spending variance