Milberg Co. uses absorption costing and standard costing to improve cost control.

In 2012, 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 2012.

Materials purchased...........................................................................20,000 units

Direct labour costs incurred........................................................................$36,000

Total of direct labour rate and efficiency variances............................................$ 500 F

Actual wage rate ($0.20 less than standard)......................................................$ 4.80

Underapplied variable overhead costs........................................................$ 1,065 U

Total underapplied fixed and variable overhead costs.....................................$ 2,256 U

Materials price variance...........................................................................$ 200 F

Materials efficiency variance.....................................................................$ 610 F

Price of purchased materials............................................................$ 0.60 per unit

Materials used...............................................................................15,000 units

Instructions

Identify and calculate as many different variances as you can for 2012.