Reference no: EM132663774

The Chad Company produces and sells Bean Bag Chairs. Standards for the product follow:

• Direct materials, 8 yards at $2.00 per yard
• Direct labor, ½ direct labor hour at $10 per direct labor hour
• Variable overhead, ½ direct labor hour at $2 per direct labor hour
• Fixed overhead, ½ direct labor hour at $6 per direct labor hour
• Standards are based on 24,000 budgeted direct labor hours per year.
• The company manufactured and sold 44,000 units of product during the year. A total of 360,000 yards of material was purchased and used during the year at a cost of $2.25 per yard.
• The company worked 23,500 direct labor hours during the year at a rate of $8.10 per hour.
• Actual variable overhead costs were $45,000. Actual fixed overhead costs were $143,000.

Problem 1: Compute the direct materials price variance-----------$? and Favorable or Unfavorable?

Problem 2: Compute the variance direct materials quantity variance-----------$? and Favorable or Unfavorable?

Problem 3: Compute the direct labor rate variance-----------$? and Favorable or Unfavorable?

Problem 4: Compute the direct labor efficiency variance-----------$? and Favorable or Unfavorable?

Problem 5: Compute the variable overhead spending variance -----------$? and Favorable or Unfavorable?

Problem 6: Compute the variable overhead efficiency variance-----------$? and Favorable or Unfavorable?

Problem 7: Compute the fixed overhead spending variance:-----------$? and Favorable or Unfavorable?