Fosse Manufacturing Company Has Developed the Following Standards for One

Essay

Fosse Manufacturing Company has developed the following standards for one of their products:
The company records materials price variances at the time of purchase.
The following activities occurred during the month of May:
Required:

a.
Calculate the materials price variance and indicate whether it is favorable or unfavorable.
b.
Calculate the materials usage variance and indicate whether it is favorable or unfavorable.
c.
Calculate the labour rate variance and indicate whether it is favorable or unfavorable.
d.
Calculate the labour efficiency variance and indicate whether it is favorable or unfavorable.
e.
Calculate the variable overhead spending (expenditure) variance and indicate whether it is favorable or unfavorable.

f. Calculate the variable overhead efficiency variance and indicate whether it is favorable or unfavorable.