Compute all of the materials and labor variances.

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials—2 pound plastic at $6.70 per pound $ 13.40 Direct labor—2.00 hours at $12.00 per hour 24.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 16.00 Total standard cost per unit $65.40

The predetermined manufacturing overhead rate is $14 per direct labor hour ($28.00 ÷ 2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,600 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $69,600 ($6.00 per hour) and total fixed overhead costs of $92,800 ($8.00 per hour). Actual costs for October in producing 3,900 units were as follows.

Direct materials (7,960 pounds) $ 55,402 Direct labor (7,610 hours) 94,060 Variable overhead 77,967 Fixed overhead 33,203 Total manufacturing costs $260,632

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

(a) Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

Total materials variance $Entry field with incorrect answer now contains modified data Entry field with correct answer Materials price variance $????? Materials quantity variance $????? Total labor variance $?????? Labor price variance $??????? Labor quantity variance $???????

(b) Compute the total overhead variance. ???????

Total overhead variance $Entry field with incorrect answer now contains modified data Entry field with correct answer Click if you would like to Show Work for this question: Open Show Work


 

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