McDormand Co. manufactures products in batches of 100 units per batch. The company uses a standard cost system and prepares budgets that call for 500 of these batches per period. Fixed overhead is $60,000 per period. The standard costs per batch follow:

Material (80 gallons) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32

Labor (60 hours) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480

Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252

Standard cost per batch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $764

During the period, 503 batches were manufactured, and the following costs were incurred:

Materials used (40,743 gallons) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,482.34

Labor (29,677 hours at $8.65 per hour) . . . . . . . . . . . . . . . . . . . . . . . . . . . 256,706.05

Actual variable overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,080.00

Actual fixed overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,500.00

Required:

Calculate the variances for materials, labor, and overhead. For overhead, use the two variance method.