Q. No. 1 (Material Variances)Part 1Standard cost to make 4,000 chopping blocks (4,000 x 2.5 x $1.80)= $18,000How much greater or less cost was incurred?Actual cost incurred= $18,700Less: Standard cost= $18,000More cost incurred than standard= $700Part 21. Material price variance = AQ x (AP SP)MPV = 11,000 x ($1.70 - $1.80)MPV = $1,100 favorable

Actual price per unit = $18,700 / 11,000 = $1.70 per board feet

2. Material quantity variance = SP x (AQ SQ)MQV = $1.80 x (11,000 10,000)MQV = $1,800 unfavorable

Standard quantity = 4,000 x 2.5 = 10,000 feetQ. No. 2 (Direct Labor Variances)Part 1Standard labor cost for 6,000 meals (6,000 x 0.20 x $9.50)= $11,400How much does this differ from the actual direct labor cost?Actual cost incurred= $11,500Less: Standard cost= $11,400More cost incurred than standard= $100Part 21. Labor rate variance = AH x (AR SR)LRV = 1,150 x ($10 - $9.50)LRV = $575 unfavorable

2. Labor efficiency variance = SR x (AH SH)LEV = $9.50 x (1,150 1,200)LEV = $475 favorable

Standard hours = 6,000 x 0.20 = 1,200 hoursQ No. 3 (Variable Overhead Variances)Part 1Standard variable overhead cost (140,000 x 0.04 x $2.80)= $15,680

How much does this differ from the actual variable overhead cost?Actual cost incurred= $15,950Less: Standard cost= $15,680More cost incurred than standard= $270Part 21. Variable overhead rate variance = AH x (AR SR)LRV = 5,800 x ($2.75 - $2.80)LRV = $290 Favorable

Actual variable overhead cost per hour = $15,950 / 5,800 = $2.75 per hour

2. Variable overhead efficiency variance = SR x (AH SH)LEV = $2.80 x (5,800 5,600)LEV = $560 unfavorable

Standard hours = 140,000 x 0.04 = 5,600 hours