23-6

Direct material cost variance = Actual direct material used x (Actual rate - Standard rate)
Direct material cost variance = (6,900 x 1.1) x ($0.40 - $0.30)
Direct material cost variance = $759 unfavorable
Direct material efficiency variance = Standard rate x (Actual quanity - Standard Quantity)
Direct material efficiency variance = $0.30 x ((6,900 x 1.1) - (6,900 x 0.8))
Direct material efficiency variance = $621 unfavorable
23-7
Direct labor cost variance = Actual direct labor hours x (Actual rate - Standard rate)
Direct labor cost variance = (6,900 x 0.2) x ($10 - $13)
Direct labor cost variance = $4,140 favorable
Direct labor efficiency variance = Standard rate x (Actual hours - Standard hours)
Direct labor efficiency variance = $13 x ((6,900 x 0.2) - (6,900 x 0.3))
Direct labor efficiency variance = $8,970 favorable
23-28A
Part 1
Direct material cost variance = Actual direct material used x (Actual rate - Standard rate)
Direct material cost variance = 210,000 x ($0.21 - $0.16)
Direct material cost variance = $10,500 unfavorable
Direct material efficiency variance = Standard rate x (Actual quanity - Standard Quantity)
Direct material efficiency variance = $0.16 x (210,000 - (107,000 x 2))
Direct material efficiency variance = $640 favorable
Direct labor cost variance = Actual direct labor hours x (Actual rate - Standard rate)
Direct labor cost variance = 1,640 x ($8.15 - $8.00)
Direct labor cost variance = $246 unfavorable
Direct labor efficiency variance = Standard rate x (Actual hours - Standard hours)
Direct labor efficiency variance = $8 x (1,640 - (107,000 x 0.02))
Direct labor efficiency variance = $4,000 favorable
Part 2
Variable Overhead cost variance = Actual Direct Labor Hours x (Actual rate - Standard rate)
Variable Overhead cost variance = $8,000 - (1,640 x $9.00)
Variable Overhead cost variance = $6,760 favorable
Variable Overhead efficiency variance = Standard rate x (Actual hours - Standard hours)
Variable Overhead efficiency variance = $9 x (1,640 - (107,000 x 0.02))
Variable Overhead efficiency variance = $4,500 favorable
Fixed overhead spending variance:
Actual Fixed Overheads $30,000
Less: Applied fixed overheads $27,880 (1,640 x $17)
Unfavorable spending variance $2,120
Fixed overhead volume variance:
Applied Fixed overheads $27,880 (1,640 x $17)
Less: Budgeted fixed overheads $32,980
Unfavourable volume variance $5,100