Question

35. SEMO Vases produces the following standard cost to make a clay vase: Direct Materials: 2 pounds @ $4.00 per pound Direct Labor 3 hours @ $9.00 per hour FOH applied at 60% of Direct Labor After production takes place, SEMO Vases reports the following actual costs to make clay vases: Direct Materials: 2.5 pounds @ $3.50 per pound Direct Labor: 2 hours @ $8.00 per hour Actual FOH cost incurred during production: $15,000. Given the answers you have calculated for the four variances above, what would be the total FOH variance if the overall unit variance was $10.00 Favorable? Enter your answer using the following format ($, then the number using commas and decimal points as appropriate, followed by F for favorable or U for unfavorable) For example $4,321.00 F or $123.50 U or $.92 F

Answer 1

Ans 35
Total Material varaince
(2.5*3.5)-(2*4)	0.75
Total labor variance	11	F
(2*8)-(3*9)	-11
11-.75+x=10 F
x=10+.75-11	-0.25
Total FOH variance= .25U
cross check
11-.75-.25	10	F
If any doubt please comment