Standard costs: budgeted units of production - 16,000 [80% (or normal) capacity] standard labor hours per unit - 4 standard labor rate - $26 per hour standard material per unit - 8 lbs. standard material cost - $12 per pound standard variable overhead rate - $15 per labor hour budgeted fixed overhead - $640,000 fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity. actual cost: actual production - 16,500 units actual material purchased and used - 130,000 pounds actual total material cost - $1,600,000 actual labor - 65,000 hours actual total labor costs - $1,700,000 actual variable overhead - $1,000,000 actual fixed overhead - $640,000
determine: (a) the quantity variance, price variance, and total direct materials cost variance; (b) the time variance, rate variance, and total direct labor cost variance; and (c) the volume variance, controllable variance, and total factory overhead cost variance.

DIRECT MATERIALS VARIANCES

price variance  $(40,000.00)

quantity variance  $3,000.00

DIRECT LABOR VARIANCES

rate variance  $(10,000.00)

efficiency variance  $21,000.00

Explanation:

DIRECT MATERIALS VARIANCES

std cost  $12.00

actual cost  $12.31  ($1,600,000 actual cost/ 130,000 pounds)

quantity130,000

difference  $(0.31)

price variance  $(40,000.00)

std quantity132000.00 (16,500 units x 8 pounds per unit)

actual quantity130000.00

std cost  $1.50

difference2000.00

quantity variance  $3,000.00

DIRECT LABOR VARIANCES

std rate  $26.00

actual rate  $26.15 ($1,700,000 / 65,000 ACTUAL HOURS)

actual hours65,000

difference  $(0.15)

rate variance  $(10,000.00)

std  hours66000.00 ( 4 hours per uniot X 16,500 units)

actual hours65000.00

std rate  $21.00

difference1000.00

efficiency variance  $21,000.00

answer; /// i believe the correct answer is (all of the above);

answer; because many corporate watch groups will discover and publicize unethical behavior by suppliers, link it to the american company, and harm its reputation;