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variance analysis the sudbury south carolina plant of saldanha sports company has th 650055

Variance analysis The Sudbury, South Carolina, plant of Saldanha Sports Company has the following standards for its soccer ball production:

Standards:

 

Material (leather) per soccer ball

0.25 yard

Material price per yard

$16

Direct labor hours per soccer ball

0.20 hour

Wage rate per direct labor hour

$10 per hour

Variable support cost rate

$15 per direct labor hour

Actual results for October:

 

Used 13,000 yards of raw material, purchased for $205,150

 

Paid for 8,240 direct labor hours at $9.50 per hour

 

Incurred $131,840 of variable support costs

 

Manufactured 40,000 soccer balls

 

Required

Determine the following variances for October:

(a) Total direct material cost variance

(b) Total direct labor cost variance

(c) Total variable support cost variance

(d) Direct material price variance

(e) Direct material quantity variance

(f) Direct labor rate variance

(g) Direct labor efficiency variance

(h) Variable support rate variance

(i) Variable support efficiency variance.

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