The following information is for the standard and actual costs for the Happy Corporation. Standard Costs: Budgeted units of production 16,000 (80% of capacity) Standard labor hours per unit 4 Standard labor rate $26 per hour Standard material per unit 8 lbs. Standard material cost $ 12 per lb. Budgeted fixed overhead $640,000 Standard variable overhead rate $15 per labor hour. Fixed overhead rate is based on budgeted labor hours at 80% capacity. Actual Cost: Actual production 16,800 units Actual fixed overhead $650,000 Actual variable overhead $1,050,000 Actual labor 67,000 hours, total labor costs $1,800,000 Actual material purchased and used 135,000 lbs, total material cost $1,700,000 Actual variable overhead $1,010,000 Determine: (a) the quantity variance, price variance, and total direct materials cost variance; (b) the time variance, rate variance, and total direct labor cost variance; and (c) the volume variance, controllable variance, and total factory overhead cost variance. Can somebody please help me with this Accounting question? I am having trouble understanding this question. I am so confused and I dont know how to even start this question Can somebody help me with this question?
