Problem $10-28($Static$)$ Comprehensive Variance Analysis $[$LO$2,$ LO$3,$ LO$4,$ LO$5,$ LO$6]$

Tech Inc. manufactures cameras used in recreational drones. Overhead is applied to the product based on direct labour$-$hours. Management has decided to implement a standard costing system in an attempt to reduce costs and has established the following standards for the cameras:

$$Standard Quantity or Hours per CameraStandard CostDirect materials$6$components$ $0\mathrm{.}50$Direct labour$1\mathrm{.}3$hours$30$Variable manufacturing overhead$1\mathrm{.}3$hours$4$Fixed manufacturing overhead$1\mathrm{.}3$hours$6$

During July the company produced $3,000$ cameras. The fixed overhead expense budget for July was $$24,180,$ with $4,030$ direct labour$-$hours as the denominator level of activity. Production data for the month on the cameras follow:

Direct materials: $25,000$ components were purchased at a cost of $$0\mathrm{.}48$ each.

$5,000$ of the the components were still in inventory at the end of the month

Direct labour: $4,000$ direct labour$-$hours were worked at a cost of $$128,000$

Variable overhead: Actual cost in July was $$17,000$

Fixed overhead: Actual cost in July was $$25,000$

Required:

Compute the following variances for July:

$1)$ The materials price and quantity variances.

$2)$ The labour rate and efficiency variances.

$3)$ The variable manufacturing overhead spending and efficiency variances.

$4)$ The fixed manufacturing overhead budget and volume variances.

$5)$ Calculate total overapplied or underapplied overhead for July.