Martin Hickey was a new cost accountant at Freeport Plastics Corporation. He was assigned to analyze the following data that his predecessor left him:

Planned volume for year (static budget).......................................... 10,000 units

Standard direct materials cost per unit........................ 2 pounds @ $3.60 per pound

Standard direct labor cost per unit.............................. 0.5 hour @ $30.00 per hour

Total planned fixed overhead costs..................................................... $24,000

Actual volume for the year (flexible budget).................................... 10,800 units

Actual direct materials cost per unit........................ 1.9 pounds @ $3.84 per pound

Actual direct labor cost per unit................................. 0.6 hour @ $24.00 per hour

Total actual fixed overhead costs....................................................... $24,800

Required

a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity.

b. Calculate the materials price and usage variances and indicate whether they are favorable (F) or unfavorable (U).

c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.

d. Calculate the labor price and usage variances and indicate whether they are favorable (F) or unfavorable (U).

e. Calculate the predetermined overhead rate, assuming that Freeport Plastics uses the number of units as the allocation base.

f. Calculate the fixed manufacturing overhead cost spending variance and indicate whether it is favorable (F) or unfavorable (U).

g. Calculate the fixed manufacturing overhead cost volume variance and indicate whether it is favorable (F) or unfavorable (U).