Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 34

Direct materials, direct labor, and factory overhead cost variance analysis
Adamantane Inc. processes a base chemical into plastic Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 15,000 units of product were as follows:

Each unit requires 0.2 hour of direct labor.
Instructions
Determine (a) the direct materials price variance, direct materials quantity variance, and total direct materials cost variance; (b) the direct labor rate variance, direct labor time variance, and total direct labor cost variance; and (c) the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance.