Accounting

For Russell, Inc., direct materials standards are 5 pounds at $15 per pound, direct labor standards are 2 hours at $25 per hour, and variable overhead is applied at a rate of $50 per hour. Russell budgeted to manufacture and sell 280,000 units for $550 per unit, but actually manufactured and sold 300,000 units for total revenues of $163,000,000, spending $25,000,000 for 1,600,000 pounds of direct materials and $14,000,000 for 550,000 hours of direct labor. Fixed overhead was budgeted at $40,000,000, but actually cost $45,000,000. Variable overhead actually cost $25,000,000.

Calculate all nine variances and indicate whether they are favorable or unfavorable.

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Haschita Enterprises planned to sell 500,000 units last period for $5 per unit, but only sold 485,000 for total revenue of $2,600,000. Haschita’s production standards are 5 pounds of materials per unit at $0.24 per pound and 10 minutes of labor at $10 per hour. Variable overhead is applied at a rate of $8 per hour. Fixed costs are budgeted at $300,000. Haschita actually purchased and used 2,000,000 pounds of material for $500,000, and labor actually worked 81,000 hours at a total cost of $817,000. Haschita actually spent $650,000 on variable overhead and $280,000 on fixed costs. Fill in the amounts in each column

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