Compute the variances for cajun

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Reference no: EM13490087

Cajun Candy Corporation manufactures giant gourmet suckers. The cost standards developed by Cajun appear below. Manufacturing overhead at Cajun is applied to production on the basis of standard direct labor-hours:

 

 

Standard quantity per sucker

Standard cost per ounce or hour

Standard cost per sucker

 

Direct materials.............................................

0.75 ounces

$20.00

$15.00

 

Direct labor....................................................

1.2 hours

$12.00

14.40

 

Variable overhead........................................

1.2 hours

$3.00

3.60

 

Fixed overhead.............................................

1.2 hours

$5.00

   6.00

 

Total standard cost per sucker...................

 

 

$39.00

The standards above were based on an expected annual volume of 8,000 suckers. The actual results for last year were as follows:

 

Number of suckers produced..................................................................

8,200

 

Direct labor-hours incurred......................................................................

10,000

 

Ounces of direct materials purchased....................................................

7,900

 

Ounces of direct materials used in production.....................................

6,070

 

Total cost of direct materials purchased...............................................

$156,815

 

Total direct labor cost...............................................................................

$122,800

 

Total variable overhead cost...................................................................

$28,600

 

 

 

  Required:

  Compute the following variances for Cajun.

a. Materials price variance.

b. Materials quantity variance.

c. Labor efficiency

d. Labor rate variance.

e. Labor spending variance

f. Variable overhead spending variance.

g. Variable overhead efficiency variance.

Reference no: EM13490087

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