Managerial Accounting: Standard Costs and Variances

Managerial Accounting: Standard Costs and Variances

I am assigned a homework problem to do, but I am completely lost…I could really use some help please! On the whole thing..

Here it is:

Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following
information is given:

Standard costs per unit:

Raw materials (1.5 grams at $16.00 per gram)…………………….. $24.00

Direct labor (0.75 hours at $8 per hour)…………………………………. $6.00

Variable overhead (0.75 hours at $3 per hour)………………………. $2.25

Actual experience for current year:

Managerial Accounting: Standard Costs and Variances

 

Units produced………………………………………………………………………. 22,400 units

Purchases of raw materials (21,000 grams at $17 per gram). $357,000

Raw materials used………………………………………………………………. 33,400 grams

Direct labor (16,750 hours at $8 per hour)…………………………….. $134,000

Variable overhead cost incurred…………………………………………….. $48,575

Compute 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 overhead spending variance

f. Variable overhead efficiency variance

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