The following information is provided to assist you in evaluating the performance of the production operations of Studio Company:

Units produced (actual) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,000

Master production budget

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $132,000

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,000

Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159,200

Standard costs per unit

Direct materials . . . . . . . . . . . . . . . . . . . . $1.65 × 2 gallons per unit of output

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . $14 per hour × 0.2 hour per unit

Variable overhead . . . . . . . . . . . . . . . . . . . . . . . . $11.90 per direct labor-hour

Actual costs

Direct materials purchased and used . . . . . . . . . . . $150,960 (81,600 gallons)

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,708 (8,560 hours)

Overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163,200 (61% is variable)

Variable overhead is applied on the basis of direct labor-hours.

Required

Prepare a report that shows all variable production cost price and efficiency variances and fixed production cost price and production volume variances.