[lindslu]

Can someone please demonstrate this problem... thanks!!

Standard costs and actual costs incurred for the manufacture of 8,000 units of product were as follows:



Standard Costs Actual Costs



Direct Materials: 8,000 lbs @ $30 per lb 7,750 lbs @ $30.20 per lb



Direct Labor: 10,000 hours @ $36.50 per hour 10,250 hours @ $38 per hour



Factory Overhead:

Rates per direct labor hour, based on 100% capacity

of 16,000 labor hours



Variable Cost: $15.00 $189,400 Total Variable Cost

Fixed Cost: $10.00 $100,000 Total Fixed Cost



A.) Calculate:

1.) Quantity Variance

2.) Price Variance

3.) Time Variance

4.) Rate Variance

5.) Volume Variance

6.) Controllable Variance



B.) Write journal entries for the material and labor variances.