Study Appendix 13. The Winnipeg Chemical Company uses flexible budgets and a standard cost system.

● Direct-labor costs incurred, 12,000 hours, $150,000

● Variable-overhead costs incurred, $37,000

● Fixed-overhead flexible-budget variance, $1,600, favorable

● Finished units produced, 1,800

● Fixed-overhead costs incurred, $38,000

● Variable overhead applied at $3 per hour

● Standard direct-labor cost, $13 per hour

● Denominator production per month, 2,000 units

● Standard direct-labor hours per finished unit, 6

Prepare an analysis of all variances (similar to Exhibit 13-10, p. 553 ).