#W #2 Problem 5 Sportsman, Inc. produces different sizes of basketballs. The following costs were incurred during the year for PBA-sized basketball production. P81,250 (23% is indirect) 87,500 (27% is indirect) 70,000 (including indirect materials and indirect labor) Materials Labor Actual Factory overhead Selling expenses General and Administrative expenses 3,250 23,250 Sportsman applies overhead to production at 100% of direct labor cost. There were no work in process at the end of the year and there were no finished goods inventory at the beginning. 5,000 units were produced, and 90% of the units produced were sold.

Which one is the correct answer?

Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small businesses. The following data are available for last year's services: • WTS recorded 120,900 tech calls last year. It had budgeted 126,800 calls, averaging 90 minutes each. • Standard variable labor and support costs per tech call were as follows: Direct IT specialist services: 90 minutes at $54 per hour Variable support staff, supplies, and overhead: 30 minutes at $24 per hour Fixed overhead costs: Annual budget $4,141,800 • Fixed overhead is applied at the rate of $36.00 per call. . Actual tech service call costs: Direct IT specialist services: 120,900 calls averaging 84 minutes at $56.00 per hour Variable support staff, supplies, and overhead: averaging 40 minutes per call at $22.50 per hour x 120,900 calls Fixed overhead Required: a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost variance analysis. Complete this question by…

1.What is the labor rate variance ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number)  2. What is the variable overhead efficiency variance ? ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number)  3. what is the variable overhead rate variance?