Arrow Enterprises_Variance Analysis
Easy variance evaluation. Easy variance analysisArrow Enterprises makes use of an ordinary costing system. The usual price sheet for product no. 549 follows.Direct supplies: four items @ $6.50 $26.00Direct labor: eight hours @ $eight.50 68Variable manufacturing unit overhead: eight hours@ $7.00 56Fastened manufacturing unit overhead: eight hours @ 2.520Whole normal price per unit $170.00The next info pertains to exercise for December:1.Direct supplies acquired throughout the month amounted to 26,350 items at $6.40 per unit. All supplies have been consumed in operations.2.Arrow incurred a mean wage charge of $eight.75 for 51,400 hours of exercise.three.Whole overhead incurred amounted to $508,400. Budgeted fastened overhead totals $1.eight million and is unfold evenly all year long.four.Precise manufacturing amounted to six,500 accomplished items.a. compute Arrows direct materials variancesb. Compute Arrows direct labor variances.c. Compute Arrows variances for manufacturing unit overhead