Tiger, Inc. budgeted the following overhead costs for the current year assuming operations at 80% of capacity, or 40,000 units:
The standard cost per unit when operating at this same 80% capacity level is:
The actual production achieved in the current year was 60% of capacity, or 30,000 units. The actual costs were:
Calculate the following variances and indicate whether each is favorable or unfavorable.
$$\begin{array}{l}

\begin{array} { | c | l |}
\hline \text { Direct materials: }&\quad\quad\quad\quad\quad\quad\quad\
\hline \text { Price variance } & \
\hline \text { Quantity variance } & \
\hline \text { Direct labor: } & \
\hline \text { Rate variance } & \
\hline \text { Efficiency variance } & \
\hline \text { Variable overhead: } & \
\hline \text { Spending variance } & \
\hline \text { Efficiency variance } & \
\hline \text { Fixed overhead: } & \
\hline \text { Spending variance } & \
\hline \text { Volume variance } & \
\hline
\end{array}
\end{array}$$

Question

Tiger, Inc. budgeted the following overhead costs for the current year assuming operations at 80% of capacity, or 40,000 units:
  The standard cost per unit when operating at this same 80% capacity level is:
  The actual production achieved in the current year was 60% of capacity, or 30,000 units. The actual costs were:
  Calculate the following variances and indicate whether each is favorable or unfavorable.
 $$\begin{array}{l}

\begin{array} { | c | l |} 
\hline  \text { Direct materials: }&\quad\quad\quad\quad\quad\quad\quad\
\hline \text { Price variance } & \
\hline \text { Quantity variance } & \
\hline \text { Direct labor: } & \
\hline \text { Rate variance } & \
\hline \text { Efficiency variance } & \
\hline \text { Variable overhead: } & \
\hline \text { Spending variance } & \
\hline \text { Efficiency variance } & \
\hline \text { Fixed overhead: } & \
\hline \text { Spending variance } & \
\hline \text { Volume variance } & \
\hline
\end{array}
\end{array}$$

Quizplus · Accepted Answer

The Answer of Tiger, Inc. budgeted the following overhead costs for the current year assuming operations at 80% of capacity, or 40,000 units:
  The standard cost per unit when operating at this same 80% capacity level is:
  The actual production achieved in the current year was 60% of capacity, or 30,000 units. The actual costs were:
  Calculate the following variances and indicate whether each is favorable or unfavorable.
 $$\begin{array}{l}

\begin{array} { | c | l |} 
\hline  \text { Direct materials: }&\quad\quad\quad\quad\quad\quad\quad\
\hline \text { Price variance } & \
\hline \text { Quantity variance } & \
\hline \text { Direct labor: } & \
\hline \text { Rate variance } & \
\hline \text { Efficiency variance } & \
\hline \text { Variable overhead: } & \
\hline \text { Spending variance } & \
\hline \text { Efficiency variance } & \
\hline \text { Fixed overhead: } & \
\hline \text { Spending variance } & \
\hline \text { Volume variance } & \
\hline
\end{array}
\end{array}$$