Costs and Production Data		Actual		Standard
Raw materials unit cost		$2.10		$1.90
Raw materials units		11,300		10,700
Direct labor payroll		$168,5720		$166,770
Direct labor hours worked		14,800		15,300
Manufacturing overhead incurred		$232,608
Manufacturing overhead applied				$235,008
Machine hours expected to be used at normal capacity				41,500
Budgeted fixed overhead for June				$66,400
Variable overhead rate per machine hour				$3.20
Fixed overhead rate per machine hour				$1.60

Overhead is applied on the basis of standard machine hours. 3.00 hours of machine time are required for each direct labor hour. The jobs were sold for $453,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials purchased equaled the amount used.

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Compute all of the variances for (1) direct materials and (2) direct labor. (Round per unit values to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 52.)

(1)		Total materials variance		$		FavorableUnfavorableNeither favorable nor unfavorable
		Materials price variance		$		FavorableUnfavorableNeither favorable nor unfavorable
		Materials quantity variance		$		FavorableUnfavorableNeither favorable nor unfavorable
(2)		Total labor variance		$		FavorableUnfavorableNeither favorable nor unfavorable
		Labor price variance		$		FavorableUnfavorableNeither favorable nor unfavorable
		Labor quantity variance		$		FavorableUnfavorableNeither favorable nor unfavorable

Answer rating: 100% (QA)

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