he following data were prepared so that a variance analysis could be

Exercise 15Hennings Travel Company specializes in the production of travel items(e.g., clocks, personal care kits). The following data were prepared sothat a variance analysis could be performed:Forecast Data (Expected Capacity)Direct labor hours40,000Estimated overhead:Fixed$16,000Variable$30,000Actual ResultsDirect labor hours37,200Overhead:Fixed$16,120Variable$28,060The number of standard hours allowed for actual productionwas 37,000.RequiredA.Calculate the variable overhead spending variance.B.Calculate the variable overhead efficiency variance.Exercise 16Refer to the information in Exercise 15.RequiredA.Calculate the fixed overhead volume variance.B.Calculate the fixed overhead spending variance.Problem 20Petty Petroleum, Inc., uses various chemicals to manufacture itsproducts. Variance data for last month for the three primarychemicals used in production are as follows (F indicates afavorable variance; U indicates an unfavorable variance):X42AYS9BZMaterial PriceVariance$84,000 F$50,00 F$42,000 UMaterial UsageVariance80,000 U60,000 U96,000 UTotal MaterialsVariance (net)$4,000 F$10,000 U$138,000 UProductsrequiring thischemical200,000220,000250,000The standard called for 1 pound of chemical for each productrequiring the specific chemical. Because of falling prices in thechemical industry, Petty Petroleum generally paid less forchemicals last month than in previous months. Specifically, theaverage price paid was $0.40 per pound less than standard forchemical X42; it was $0.20 less for chemical AY8; and it was$0.14 greater for chemical 9BZ. All of the chemicals purchasedlast month were also used during the month.RequiredA.For chemical X42, calculate the number of pounds ofmaterial purchased, the standard cost per pound of material,and the total standard material cost.B.For chemical AY8, calculate the number of pounds ofmaterial purchased, the standard cost per pound of material,and the total standard material cost.C. For chemical 9BZ, calculate the number of pounds ofmaterial purchased, the standard cost per pound of material,and the total standard material cost.Problem 23Timmer Bachman founded the Bachman Corporation over 25years ago. The company’s genesis was spurred by the uniqueclimbing apparatus developed by Timmer, an avid mountaineer.Bachman Corporation has continued to produce that firstproduct, but it has now diversified into other outdoor activityequipment as well. In fact, the vast majority of the company’srevenues are now accounted for by sales of nonclimbingproducts. Timmer is considering whether his company shouldcontinue producing and selling some of its oldest products, allof which relate to mountain climbing.To begin his decision-making process, Timmer has asked thecompany’s controller, Marin Hennesy, to accumulate data onthe original locking carabiner that set the company on its way.Accordingly, Marin accumulated the following data for last year:• Budgeted production and sales: 5,000 carabiners.• Actual production and sales: 6,000 carabiners.• The standard for a carabiner requires 1.5 ounces of materialat a budgeted cost of $1.52 per ounce and two hours ofassembly and testing time at a cost of $12.50 per hour.• The carabiner sells for $32 each.• Actual production costs for the 6,000 carabiners totaled$12,900 for 8,600 ounces of materials and $161,700 for13,200 labor hours.RequiredA.What was the budgeted contribution margin percarabiner?B.What was the actual contribution margin per carabiner?C.What was Bachman’s flexible budget variance?D.What was Bachman’s direct material price variance?E.What was Bachman’s direct material usage variance?F.What was Bachman’s direct labor rate variance?G.What was Bachman’s direct labor efficiency variance?H.What would the sales price variance be if each carabinersold for $33?I. On the basis of the available information, should Bachmancontinue making the carabiner?Sawyers, Jackson, Jenkins. Managerial ACCT2, 2e, 2nd Edition.Cengage Learning, 02/2012. VitalBook file.