Milberg Co. uses absorption costing and standard costing to improve cost control. In 2016, the total budgeted overhead rate was $1.55 per direct labour hour. When preparing the budget, Milberg expected a monthly activity level of 10,000 direct labour hours. The monthly variable overhead cost budgeted for this level of activity was $9,500.

The following data on actual results are provided for the month of November 2016.

Instructions
Identify and calculate as many different variances as you can for 2016.

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Materials purchased Direct labour costs incurred Total of direct labour rate and efficiency variances Actual wage rate ($0.20 less than standard) Underapplied variable overhead costs Total underapplied fixed and variable overhead costs Materials price variance Materials efficiency variance Price of purchased materials Materials used 20,000 units $36,000 $ 500 F $ 4.80 $ 1,065 U $ 2,256 U $ 200 F $ 610 F $ 0.60 per unit 15,000 units