Direct materials. . . . . . . . . . . . . . . . . . .	$2.65
Direct labour. . . . . . . . . . . . . . . . . . . . . . . .	2.35
Manufacturing overhead. . . . . . . . . . . . . .	1.60
Standard unit cost. . . . . . . . . . . . . . . . . . .	$6.60

	Number of Outputs (cans)
	26,000	28,000	33,000
Standard machine hours. . . . . . . . .	2,600	2,800	3,300
Budgeted manufacturing
overhead cost:
Variable. . . . . . . . . . . . . . . . .	$15,600	$16,800	$19,800
Fixed. . . . . . . . . . . . . . . . . . .	28,000	28,000	28,000

Quartnox

manufactures paint. The company charges the following standard unit costs to production on the basis of static budget volume of

28,000

cans of paint per month:

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(Click the icon to view the standard unit costs to production.)

Quartnox

allocates overhead based on standard machine hours and uses the following monthly flexible budget for overhead:

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(Click the icon to view the monthly flexible budget for overhead.)

Quartnox

actually produced

33,000

cans of paint using

3,190

machine hours. Actual variable overhead was

$16,200,

and fixed overhead was

$34,000.

Compute the total overhead variance, the overhead flexible budget variance, and the production volume variance.

Identify the formula labels and compute the total overhead variance. (Enter the result as a positive number. Label the variance as favourable (F) or unfavourable (U).)

Total overhead variance:

Total overhead variance

Identify the formula labels and compute the overhead flexible budget variance. (Enter the result as a positive number. Label the variance as favourable (F) or unfavourable (U).)

Overhead flexible budget variance:
Overhead flexible budget variance

Identify the formula labels and compute the production volume variance. (Enter the result as a positive number. Label the variance as favourable (F) or unfavourable (U).)

Production volume variance:
Production volume variance