Question: Dante s Statue Company produces lawn statues The standard cost

Dante’s Statue Company produces lawn statues. The standard cost of producing one statue is:
Material (2.5 pounds x \$2.80) .......... \$ 7.00
Labor (.75 hours x \$12) ........... 9.00
Total ................... \$26.00
Standard variable overhead is \$6.20 per unit, and fixed annual overhead is \$95,000.At the start of 2012, expected production was 25,000 units. During 2012, 27,000 statues were produced.
The following information, related to actual costs incurred in 2012, is available:
1. Purchased 70,000 pounds of material for \$182,000.
2. Used 68,200 pounds of material.
3. Worked 19,600 labor hours costing \$254,800.
4. Actual overhead incurred was \$260,000.
Required
a. Show the calculation of the standard overhead rate per unit of \$10.
b. Calculate all material, labor, and overhead variances.
c. Prepare a variance summary, and briefly comment on variances that should be investigated.

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