Randhart Foam Case

Assumptions

1) Standard Unit Price and Actual Unit Price for Direct Material are the same.

2) No night hours needed for Standard Direct Labor.

3) Fixed Overhead Rates are per hour of Direct Labor.

| |Direct Material Variance |

|  |Actual |Flexible |Standard |

|  |Actual units (purchases) |Actual Price |Actual units |Standard Price |Standard Units |Standard Price |

| | | |(purchases) | | | |

|  |85,000 | $ 5.00 |85,000 |$ 5.00 | | $ 5.00 |

| | | | | |80,000 | |

|1998 |TOTAL | $ 425,000 | TOTAL | $ 425,000 | TOTAL | $ 400,000 |

|  |Price Variance | |  |Quantity Variance (U) | $ 25,000 |

| | |- | | | |

|  | | $ 6.00 | | $ 6.00| | $ 6.00 |

| |87,000 | |87,000 | |85,000 | |

|1999 | TOTAL...