REQUIRED:

Compute the direct materials, direct labor, and variable manufacturing overhead variances.

Note: the Answers should be computerized

ABS Company produces a product ALPHA. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 0.5 kilo at $2 per kilo Direct labor: 2.2 hours at $10 per hour Variable manufacturing overhead: 2.2 hours at $6 per hour1.2 Total standard variable cost per unit $1 $15 During January, 2,000 units were produced. The costs associated with January's operations were as follows: Material purchased: 3,000 kilos at $1.60 per kilo. Material used in production: 2,800 kilos Direct labor: 1,800 hours at $10.75 per hour190 Variable manufacturing overhead costs incurred$,800 $4,800