Problem 16-72 (Algo) Variance Computations with Missing Data (LO 16-5, 6) The following information is provided to assist you in evaluating the performance of the production operations of Studio Company:

Problem 16-72 (Algo) Variance Computations with Missing Data (LO 16-5, 6) The following information is provided to assist you in evaluating the performance of the production operations of Studio Company: Units produced (actual) 54,000 Master production budget Direct materials $128,370 Direct labor 108,920 Overhead 178,940 Standard costs per unit Direct materials $1.65 × 2 gallons per unit of output Direct labor $14 per hour × 0.2 hour per unit Variable overhead $13.50 per direct labor-hour Actual costs Direct materials purchased and used $148,185 (80,100 gallons) Direct labor 133,100 (9,680 hours) Overhead 174,200 (61% is variable) Variable overhead is applied on the basis of direct labor-hours. Required: Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting “F” for favorable, or “U” for unfavorable. If there is no effect, do not select either option.) Transcribed Image Text: Efficiency Variance
Production Volume
Variance
Price Variance
Direct materials
Direct labor
Variable overhead
Fixed overhead

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