In a given month, the company used 3,450 pounds of aluminum to manufacture 920 units. The company paid $28.50 per pound during the month to purchase aluminum. At the beginning of the month, the company had 50 pounds of aluminum on hand. At the end of the month, the company had only 30 pounds of aluminum in its warehouse. Schmidt used 4,200 direct labor hours during the month, at an average cost of $41.50 per hour. Standard Cost Sheet, Product XV-1
SCHMIDT MACHINERY COMPANY
Standard Cost Sheet
Product: XV-1
Descriptions Quantity Cost Rate Subtotal Total
Direct materials
Aluminum 4 pounds $25/pound $100
PVC 1 40/pound 40
Direct labor 5 40 200
Variable factory overhead 5 12 60
Total variable manufacturing cost 400
Fixed factory overhead 5 24 120 120
Standard manufacturing cost per unit 520
Standard variable selling and administrative cost per unit 50
Required:Compute for the month the following variances:1. The purchase-price variance for aluminum. Indicate whether this variance is favorable (F) or unfavorable (U).2. The usage variance for aluminum. Indicate whether this variance is favorable (F) or unfavorable (U).3. The direct labor rate variance. Indicate whether this variance is favorable (F) or unfavorable (U).4. The direct labor efficiency variance. Indicate whether this variance is favorable (F) or unfavorable (U).