ACCT 101B Final Exam Review KEY (Ch. 20 26) (Warren 14th) 54. The following information is for the standard and actual costs for the Happy Corporation Standard Costs: Budgeted units of production 16,000 [80% (or normal) capacity] Standard labor hours per unit 4 Standard labor rate $26 per hour Standard material per unit 8 lbs Standard material cost $12 per pound Standard variable overhead rate $15 per labor hour Budgeted fixed overhead - $640,000 Fixed overhead rate is based on budgeted labor hours at 80% (or normal) capacity Actual Cost Actual production 16,500 units Actual material purchased and used - 130,000 pounds Actual total material cost $1,600,000 Actual labor 65,000 hours Actual total labor costs $1,700,000 Actual variable overhead $1,000,000 Actual fixed overhead - $640,000 Determine: (a) the direct materials quantity variance, price variance, and total cost variance; (b) the direct labor time variance, rate variance, and total cost variance; and (c) the factory overhead volume variance, controllable variance, and total factory overhead cost variance. (Note: If following text formulas, do not round interim calculations.)