Reference no: EM132509723

Part A

The following standard costs per unit have been established by Fear, Inc.:

Material (3 kilograms at $2 per kilogram) $ 6.00
Direct labor (2 hours at $12 per hour) $ 24.00
During the month, Fear produced 1,100 units, which was 100 more units than planned.

They used 3,400 kilograms and 2,050 hours to do so.

Total actual materials spending was $6,460, while total actual labor spending was $27,675.

Required

Question 1: Choose EITHER materials OR labor, and compute the following variances:

Spending
Efficiency
Activity

Be sure to denote which you chose (materials or labor) and label each variance as favorable or unfavorable.

Marbles Company sells two products - Deluxe and Ultra.

The following information was gathered about the two products:

                                                  Deluxe.          Ultra

Budgeted sales in units         3,200            800

Budgeted selling price (unit) $300             $850

Actual sales in units            3,500         1,500

Actual selling price (unit)       $325       $840

Required

Question 2: Calculate the three main revenue variances for the Deluxe product.

Question 3: Be sure to label the variances by name, as well as "favorable" or "unfavorable."

Question 4: If there is insufficient information to calculate any of the variances, please denote that clearly.