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Dillard, Inc. has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of the firm's capacity.

Dillard, Inc. has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of the firm's capacity. Fixed overhead is $360,000 and variable overhead is $180,000 at this level of activity.

Direct material (3 lbs. @ $2.00/lb.) $ 6.00
Direct labor (0.5 hrs. @ $8.00/hr.) 4.00
Factory overhead (0.5 hrs. @ $9.00/hr.) 4.50
Total standard cost per unit $14.50

During the last period, the company spent 48,000 direct labor-hours to produce 128,000 units and incurred the following manufacturing costs:

Actual cost incurred
Direct material (380,000 lbs.) $779,000
Direct labor (63,000 hrs.) 507,150
Fixed overhead 365,000
Variable overhead 220,000

Required:
a. Determine all variances for direct materials, direct labor, and factory overheads. Use the 4-variance method for factory overheads.
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Accounting-8083522.xls

Dillard, Inc. has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of the firm's capacity. Fixed overhead is $360,000
and variable overhead is $180,000 at...

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