specialty polymers inc processes a base chemical into plastic standard costs and act 492112

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

Specialty Polymers, Inc., processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 19,000 units of product were as follows:

Based on 100% of normal capacity of 3,900 direct labor hrs:

Each unit requires 0.2 hour of direct labor.

Required:

a. Determine the price variance, quantity variance, and total direct materials cost variance.

Use the minus sign to enter favorable variances as negative numbers.

b. Determine the rate variance, time variance, and total direct labor cost variance. Use the minus sign to enter favorable variances as negative numbers.

c. Determine variable factory overhead Controllable Variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Use the minus sign to enter favorable variances as negative numbers.