1.Falcon Company's output for a period was assigned the standard direct labor cost of $17,160.

If the
company had a favorable direct labor rate variance of $1,000 and an unfavorable direct labor efficiency
variance of $275, what was the total actual cost of direct labor incurred during the period?

2 Woods, Inc. budgeted the following overhead costs for the current year assuming operations at 80% of
capacity, or 40,000 units:

Total variable overhead........................................... $240,000

Total fixed overhead................................................ 560,000
Total overhead......................................................... $800,000

The standard cost per unit when operating at this same 80% capacity level is:

Direct materials (5 lbs. @ $4/lb.)............................. $20.00

Direct labor (2 hrs. @ $8.75/hr.).............................. 17.50
Variable overhead (2 hrs. @ $3/hr.)........................ 6.00
Fixed overhead (2 hrs. @ $7/hr.)............................. 14.00
Total cost per unit.................................................... $57.50

The actual production achieved in the current year was 60% of capacity, or 30,000 units. The
actual costs were:

Direct materials (150,350 lbs.)................................ $616,435

Direct labor (59,800 hrs.)........................................ 520,260
Variable overhead.................................................... 192,000
Fixed overhead........................................................ 552,000

Calculate the following variances and indicate whether each is favorable or unfavorable.

Direct materials:
Price variance _________________________
Quantity variance _________________________
Direct labor:
Rate variance _________________________
Efficiency variance _________________________
Variable overhead:
Spending variance _________________________
Efficiency variance _________________________
Fixed overhead
Spending variance _________________________
Volume variance _________________________