Ronaldo Manufacturing Company uses a standard cost system in accounting for the cost of one of its products. The budgeted monthly production is 1,750 units per month. The standard direct labour cost is 15 hours per unit at $5 per hour. The budgeted cost for manufacturing overhead is set as follows:

Fixed overhead per month........................$183,750

Variable overhead per month........................78,750

Total budgeted overhead..........................$262,500

The manufacturing overhead rate is 200% of the direct labour cost.

During the month of April, the plant produced 1,650 units and the cost of production was as follows:

Direct materials (99,000 litres)..............................$792,0000

Direct labour (23,100 hours)....................................121,275

Fixed manufacturing overhead.................................195,000

Variable manufacturing overhead...............................63,525

..................................................................$1,171,800

Instructions

Calculate the following:

(a) Labour price and quantity variances

(b) Variable overhead spending and quantity variances

(c) Fixed overhead spending and volume variances