Sabates Company set the following standard unit costs for its single product.

Direct materials (5 Ibs. @ $10 per Ib.) . . . . . . . . . . . . . . . . . . . $ 50.00

Direct labor (3 hrs. @ $15 per hr.) . . . . . . . . . . . . . . . . . . . . . . 45.00

Factory overhead—variable (3 hrs. @ $5 per hr.) . . . . . . . . . . 15.00

Factory overhead—fixed (3 hrs. @ $3 per hr.) . . . . . . . . . . . . 9.00

Total standard cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $119.00

The predetermined overhead rate is based on a planned operating volume of 90% of the productive capacity of 100,000 units per quarter. The following flexible budget information is available.

During the current quarter, the company operated at 80% of capacity and produced 32,000 units of product; direct labor hours worked were 100,000. Units produced were assigned the following standard costs:
Direct materials (160,000 Ibs. @ $10 per Ib.) . . . . . . . . . . . $1,600,000
Direct labor (96,000 hrs. @ $15 per hr.) . . . . . . . . . . . . . . . 1,440,000
Factory overhead (96,000 hrs. @ $8 per hr.) . . . . . . . . . . . . 768,000
Total standard cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,808,000

Actual costs incurred during the current quarter follow:
Direct materials (155,000 Ibs. @ $10.20) . . . . . . . . . . $1,581,000
Direct labor (100,000 hrs. @ $14) . . . . . . . . . . . . . . . 1,400,000
Fixed factory overhead costs . . . . . . . . . . . . . . . . . . . 370,000
Variable factory overhead costs . . . . . . . . . . . . . . . . . 480,000
Total actual costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,831,000

Required
1. Compute the direct materials cost variance, including its price and quantity variances.
2. Compute the direct labor variance, including its rate and efficiency variances.
3. Compute the total overhead controllable and volumevariances.

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Operating Levels 80% 90% 100% Production in unitsWWw. Standard direct labor hours . Budgeted overhead 32,000 ,000 40,000 96,000 108,000 120,000 Fixed factory overhead. Variable factory overhead. $324,000 $324.000 $324.000 ...480,000 540,000 600.000