Reference no: EM132204015

Ergonomics Inc. produces office chairs for users with particular physical needs. The company uses standard costing and the following are the standard costs:

Direct Materials: 10 pounds per chair, $5 per pound

Direct Labor: 5 direct labor hours, $8 per DLH

Variable Overhead: 5 direct labor hours, $7 per DLH

Fixed Overhead: 5 direct labor hours, $12 per DLH

Actual Costs this year were:

Direct Materials: 133,400 pounds, $700,350

Direct Labor: 79,750 DLH, $622,050

Variable Overhead: $533,600

Fixed Overhead: $915,000

Ergonomics Inc. planned to produce 15,000 trays. However, only 14,500 were produced.

Complete the following and state whether the variance is F (favorable) or U (unfavorable):

DM price variance ____________________________

DM quantity variance ____________________________

DM cost variance ____________________________

DL rate variance ____________________________

DL efficiency variance ____________________________

DL efficiency variance ____________________________

Variable Overhead spending variance ____________________________

Variable Overhead efficiency variances ____________________________

Variable Overhead cost variance ____________________________

Fixed Overhead budget variance ____________________________

Fixed Overhead volume variance ____________________________

Fixed Overhead cost variance ____________________________