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The Winnipeg Chemical Company uses flexible budgets and a standard cost system.
• Direct-labor costs incurred, 12,000 hours, $150,000• Variable-overhead costs incurred, $37,000• Fixed-overhead flexible-budget variance, $1,600, favorable• Finished units produced, 1,800• Fixed-overhead costs incurred, $38,000• Variable overhead applied at $3 per hour• Standard direct-labor cost, $13 per hour• Denominator production per month, 2,000 units• Standard direct-labor hours per finished unit, 6 hours
Prepare an analysis of all variances
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