104) The Walton Manufacturing Company has developed the following standards for one of their products, a walnut fern stand.



One Walnut Fern Stand

Materials:  5 square feet x $8 per square foot$40.00

Direct labour:  2 hours x $10/DLH20.00

Variable manufacturing overhead:  2 hours x $5/DLH  10.00

Total standard variable cost per unit$70.00


The company records materials price variances at the time of purchase.  The following activity occurred during the month of April:

Materials purchased:5,000 square feet costing $46,000

Materials used:4,250 square feet

Units produced:900 units

Direct labour:2,200 hours costing $19,800

Actual variable

manufacturing overhead:$10,500

a. Calculate the direct materials price and usage variances.

b. Calculate the direct labour rate variance, the direct labour efficiency variance, and the total direct labour variance.

c.  Compute the variable manufacturing overhead spending and efficiency variances.

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