Chapter 8 Variance Analysis and Standard Costing 222 direct labor Labor Costs Incurred $1,005,000 Efficiency Variance $5,912 F Actual Wage Rate – Budgeted Wage Rate $0.97 per hour Variable...

Complete the Excel Spreadsheet using the PDF workbook as a Guide. Refer to problem 14-B in the PDF.


Chapter 8 Variance Analysis and Standard Costing 222 direct labor Labor Costs Incurred $1,005,000 Efficiency Variance $5,912 F Actual Wage Rate – Budgeted Wage Rate $0.97 per hour Variable Manufacturing overhead Flexible Budget Variance ($17,800) U Efficiency Variance ($25,900) U required Calculate the following for July: a) Total amount of direct materials used. b) Variable manufacturing overhead spending variance. c) Total number of labor hours used. AP-14B LO 4 Champlain Manufacturing has two direct cost categories: direct materials and direct labor costs. The company’s variable manufacturing overhead is allocated to products based on standard direct labor hours. The following information indicates the standards of Champlain’s manufacturing costs: direct Cost Categories Standard Quantity Cost per input Unit Direct Materials 7.5 pounds per output unit $11.25 per pound Direct Labor 0.3 hours per output unit $22 per hour Manufacturing overhead Cost per input Unit Variable Manufacturing Overhead $9.50 per Direct Labor Hour Chapter 8Variance Analysis and Standard Costing 223 By the end of May 2019 Champlain Manufacturing records indicated the following: Direct materials purchased and used $10.95 per pound 92,000 pounds Direct labor $22.50 per hour 4,350 labor hours Total actual variable manufacturing overhead $32,750 Actual production 13,000 output units required Calculate the following variances. a) Direct materials price variance. b) Direct materials quantity variance. c) Direct labor rate variance. d) Direct labor efficiency variance. e) Variable manufacturing overhead spending variance. f ) Variable manufacturing overhead efficiency variance.