During the week ended May 6, the following activity took place: 4,360 machine hours were worked. 22,800 lb of raw material were purchased for inventory at a total cost of $174,420. 3,800 cases of finished product were produced. 22,580 lb of raw material were used. 13,440 labor hours were worked at an average rate of $16.25 per hour. $23,108 actual variable overhead costs were incurred. Required: Calculate each of the following variances and provide plausible explanations for the results: a. Price variance for raw materials purchased. b. Raw materials usage variance. c. Direct labor rate variance. d. Direct labor efficiency variance. e. Variable overhead spending variance. f. Variable overhead efficiency variance.

a) Material price variance = (7.5*22800-174420) = 3420 U

b) Material quantity variance = (3800*6-22580)*7.5 = 1650 F

c) Labor rate variance = (16-16.25)*13440 = 3360 U

d) Labor efficiency variance = (3800*3.6-13440)*16 = 3840 F

e) Variable overhead spending variance = (5.5*4360-23108) = 872 F

f) Variable overhead efficiency variance = (4560-4360)*5.5 = 1100 F

Explanation:

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.