PLEASE INCLUDE HOW YOU CALCULATE VARIANCES< THIS IS A DIFFICULT SUBJECT FOR ME Hayes Chemical Company produces a chemical used in dry cleaning. Its accounting system uses standard costs. Standards for each 0.5-gallon can of chemical and actual data for Hayes Chemical follow:
											Standards and budgeted information:
		Gallons of material per can of chemical					1.20
		Hours of labor per can of chemical					1.50
		Standard cost per gallon of material					$6.00
		Standard cost per hour of labor					$9.00
		Overhead application rate per can					$7.75
		Expected production - cans of chemical					20,000
		Expected fixed overhead per year					$55,000
		Variable overhead rate per 0.5-gallon can					$5.00
		Actual information for 2018:
		Cans produced					23,000
		Gallons of material purchased					35,000
		Cost of material purchased					$250,000
		Gallons of material used in production					30,000
		Cost of direct labor incurred					$290,000
		Average wage rate per hour					$8.25
		Actual overhead cost					$220,000
Required
a. Determine the standard cost per unit.
	Material		$1.20		6.00	=	$ 7.20
	Labor		$1.50		9.00	=	13.50
	Variable overhead			5		5	5.00
	Fixed overhead		$55,000		20,000	=	2.75
	Total unit cost						$ 28.45
b. Calculate the material, labor, and overhead standards.
	Material price variance
			$ 1.1400		35,000	=	$ 39,900
			Favorable or unfavorable?				U
	Material quantity variance
			(10,000)		$ 6	=	$ (60,000)
			Favorable or unfavorable?				U
	Labor rate variance
			$ 0.75		35,152	=	$ 26,364
			Favorable or unfavorable?				F
	Labor efficiency variance
			(26,485)		$ 9	=	$ (238,364)
			Favorable or unfavorable?				U
	Overhead controllable variance
						=
			Favorable or unfavorable?
	Overhead volume variance
						=
			Favorable or unfavorable?
c. List a possible cause for each variance.
	Unfavorable Material Price Variance:
	Unfavorable Material Quantity Variance:
	Favorable Labor Rate Variance:
	Unfavorable Labor Efficiency Variance:
	Unfavorable Controllable Overhead Variance:
	Favorable Overhead Volume Variance:
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