Problem $10$A$-10($Static$)$ Comprehensive Standard Cost Variances $[$LO$10-1,$ LO$10-2,$ LO$10-3,$ LO$10-4]$

$$Wonderful$!$ Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well,$$ said Kim Clark, president of Martell Company. $$Our $$18,300$ overall manufacturing cost variance is only $1\mathrm{.}2\%$ of the $$1,536,000$ standard cost of products made during the year. That$$s well within the $3\%$ parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year.$$

The company produces and sells a single product with a standard cost card as follows:

Inputs$(1)$ Standard Quantity or Hours$(2)$ Standard Price or RateStandard Cost $(1)(2)$Direct materials$2$feet$ $8\mathrm{.}45$per foot$ $16\mathrm{.}90$Direct labor$1\mathrm{.}4$hours$ $16$per hour$22\mathrm{.}40$Variable overhead$1\mathrm{.}4$hours$ $2\mathrm{.}50$per hour$3\mathrm{.}50$Fixed overhead$1\mathrm{.}4$hours$ $6$per hour$8\mathrm{.}40$Total standard cost per unit$ $51\mathrm{.}20$

The following additional information is available for the year just completed:

The company manufactured $30,000$ units during the year.

A total of $64,000$ feet of material was purchased during the year at a cost of $$8\mathrm{.}55$ per foot. All of this material was used to manufacture the $30,000$ units produced. There were no beginning or ending inventories.

The company worked $43,500$ direct labor$-$hours at a direct labor cost of $$15\mathrm{.}80$ per hour.

Overhead is applied to products based on standard direct labor$-$hours. Data relating to manufacturing overhead costs follow:

Denominator activity level $($direct labor$-$hours$)35,000$Budgeted fixed overhead costs$ $210,000$Actual variable overhead costs incurred$ $108,000$Actual fixed overhead costs incurred$ $211,800$

Required:

Compute the materials price and quantity variances.

Compute the labor rate and efficiency variances.

For manufacturing overhead compute:

The variable overhead rate and efficiency variances.The fixed overhead budget and volume variances.