Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.
Direct materials-2 pound plastic at $6.46 per pound $ 12.92
Direct labor-1.50 hours at $12.00 per hour 18.00
Variable manufacturing overhead 10.50
Fixed manufacturing overhead 10.50
Total standard cost per unit $51.92
The predetermined manufacturing overhead rate is $14 per direct labor hour ($21.00 ÷ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 7,950 direct labor hours (5,300 units) for the month. The master budget showed total variable costs of $55,650 ($7.00 per hour) and total fixed overhead costs of $55,650 ($7.00 per hour). Actual costs for October in producing 3,200 units were as follows.
Direct materials (6,570 pounds) $ 43,888
Direct labor (4,640 hours) 56,701
Variable overhead 51,137
Fixed overhead 18,213
Total manufacturing costs $169,939
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 $