Costello Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials-1 pound plastic at $6.09 per pound $ 6.09 Direct labor-2.00 hours at $12.00 per hour 24.00 Variable manufacturing overhead 15.00 Fixed manufacturing overhead 17.00 Total standard cost per unit $62.09 The predetermined manufacturing overhead rate is $16 per direct labor hour . It was computed from a master manufacturing overhead budget based on normal production of 10,200 direct labor hours (5,100 units) for the month. The master budget showed total variable costs of $76,500 and total fixed overhead costs of $86,700.
Actual costs for October in producing 3,500 units were as follows. Direct materials $ 22,864 Direct labor 84,995 Variable overhead 82,990 Fixed overhead 31,150 Total manufacturing costs $221,999 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 $ Materials price variance $ Materials quantity variance $ Total labor variance $ Labor price variance $ Labor quantity variance $.
(b) Compute the total overhead variance. Total overhead variance $.