Chapter 16, Problem 64P

Comprehensive Variance Problem

The standard cost sheet for Chambers Company, which manufactures one product, follows:

Standards have been computed based on a master budget activity level of 28,800 direct labor-hours per month. Actual activity for the past month was as follows:

Required

Prepare variance analyses for the variable and fixed costs. Indicate which variances cannot be computed. Materials are purchased as they are used.