Question - XYZ Company reported the following information regarding its single product for May:
Direct materials:
Price variance ................. $5,000 favorable
Quantity variance .............. $16,320 unfavorable
Direct materials used .......... 40,000 pounds
Direct materials purchased ..... 50,000 pounds
Actual price paid .............. $5 per pound
Standard quantity .............. 8 pounds per unit
Direct labor:
Total variance ................. $20,150 unfavorable
Actual rate .................... $13 per hour
Standard rate .................. $15 per hour
Standard hours ................. 0.65 hours per unit
Variable overhead:
Total variance ................. $9,030 unfavorable
Spending variance .............. $27,150 favorable
Standard hours ................. 0.65 hours per unit
Calculate the actual variable overhead cost incurred during May. Do not use decimals in your answer.