Reference no: EM131774120

Problem - Show all calculations, Need help calculating the following variances for 2017 for the Company.

A Company manufactures toys. It has developed the following per unit standard costs for 2017 for each blender:

                                    Direct Materials                Direct Labor        Manufacturing Overhead

Standard Quantity           2 Pounds [steel]             1/2 hour                               1/2 hour

Standard Price                $5.00                             $12.00                                   $6.00

Unit Standard Cost          $10.00                           $6.00                                     $3.00

In 2017, the company planned to produce 80,000 toys at a level of 40,000 hours of direct labor.

Actual results for 2012 are presented below:

1. Direct materials purchases were 154,000 pounds of steel which cost $239,200. All of the materials were used in production.

2. Direct labor costs were $428,925 for 39,100 direct labor hours actually worked.

3. Total manufacturing overhead was $235,000.

4. Actual production was 25,000 toys.

Instructions - Calculate the following variances for 2017 for the Company.

[a] Total materials variance

[b] Materials price variance

[c] Materials quantity variance

[d] Total labor variance

[e] Labor price variance

[f] Labor quantity variance

[g] Total overhead variance