Standard Costs: Budgeted units of production - 16,000 (80% ofcapacity) Standard labor hours per unit -4
Standard labor rate $26 per hour Standard material per unit - 8lbs.
Standard material cost - $12 per lb.
Budgeted fixed overhead $ 640,000
Standard variable overhead rate - $ 15 per labor hour.
Fixed overhead rate is based on budgeted labor hours at 80%capacity.
Actual Cost: Actual production - 16,500 units
Actual fixed overhead - 640,000
Actual variable overhead - $ 1,000,000
Actual labor - 65,000 hours,
total labor costs $ 1,700,000
Actual material purchased and used - 130,000 lbs,total materialcost $ 1,600,000
Actual variable overhead - $ 1,000,000
Determine: (a) the quantity variance, price variance, and totaldirect materials cost variance
(b) The time variance, rate variance, and total direct laborcost variance;
(c) The volume variance, controllable variance, and totalfactory overhead cost variance.