Evaluate all of the materials and labor variances

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Reference no: EM1376151

Costello Corporation manufactures a particular product. The standard cost per unit of product is shown below.

Direct materials-3 pound plastic at $6.24 per pound $ 18.72
Variable manufacturing overhead 13.00
Direct labor-2.00 hours at $12.00 per hour 24.00
Fixed manufacturing overhead 19.00
Total standard cost per unit $74.72

The pre-determined manufacturing overhead rate is $16 per direct labor hour ($32.00 ÷ 2.00). It was computed from a master manufacturing overhead budget base on normal production of 10,600 direct labor hours (5,300 units) for month. The master budget showed net variable costs of $68,900 ($6.50 per hour) and net fixed overhead costs of $100,700 ($9.50 per hour). Actual costs for October in producing 3,700 units were as given.

Direct materials (11,270 pounds) $ 71,452
Variable overhead 89,035
Variable overhead 89,035
Fixed overhead 31,455

Total manufacturing costs $281,202

The purchasing department buys quantities of raw materials that are expected to be used in production each month. Raw materials inventories, consequently, can be ignored.

(a) Evaluate all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

Total materials variance $?

Materials price variance $?

Total labor variance $?

Materials quantity variance $?
Labor price variance $?

Labor quantity variance $?

(b) Evaluate the total overhead variance.

Total overhead variance $?

Reference no: EM1376151

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