Finder File Edit View Go Window Help e 74 E 0 Sat Jun 30 44

Finder File Edit View Go Window Help e 74% * E 0) Sat Jun 30 4:44 PM Alex E Q În ezto. meducation.com a Home - alamo.edu McGraw-Hill Connect Chapter 9 Exercises + 9. 1112 points Rip Tide Company manufactures surfboards. Its standard cost information follows: Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,000 + 300 units) Standard Quantity 15 sq. ft. 10 hrs. 10 hrs. Standard Price (Rate) $5 per sq. ft. $15 per hr. $ 6 per hr. Standard Unit Cost S 75.00 150.00 60.00 80.0 Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass used Cost of fiberglass used Number of labor hours worked Direct labor cost Variable overhead cost Fixed overhead cost 312 4,920 $27,552 3,060 $47,736 $14,790 $20,000 Required: 1. Calculate the direct materials price, quantity, and total spending variances for Rip Tide. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting \"F\" for favorable, \"U\" for unfavorable.) Direct Materials Price Variance ? Direct Materials Quantity Variance Direct Materials Spending Variance 4 80 = win :

Solution

1) Direct material price variance = (5*4920-27552) = 2952 U

Direct material quantity variance = (312*15-4920)*5 = 1200 U

Direct material spending variance = (312*75-27552) = 4152 U

2) Direct labour rate variance = (15*3060-47736) = 1836 U

Direct labour efficiency variance = (312*10-3060)*15 = 900 F

Direct labour spending variance = (312*150-47736) = 936 U