ro- Standard Manufacturing Cost Elements Quantity Price Cost Direct materials 6 litre $ 0.90 $ 5.40 Direct labour 0.5 hours $12.00 6.00 Manufacturing overhead 0.5 hours $ 4.80 2.40 $13.80 During the month, the following transactions occurred in manufacturing 10,000 tubs of sauce: 1. A total of 58,000 litres of materials were purchased at $1.00 per litre. 2. All the materials purchased were used to produce the 10,000 tubs of sauce. 3. A total of 4,900 direct labour hours were worked at a total labour cost of $56,350. 4. The variable manufacturing overhead incurred was $15,000 and the fixed overhead incurred was $10,400. The manufacturing overhead rate of $4.80 is based on a normal capacity of 5,200 direct labour hours. The total budget at this capacity is $10,400 fixed and $14,560 variable. Instructions Calculate the total variance and the variances for each of the manufacturing cost elements. Excel ACTION PLAN . Check to make sure the total variance and the sum of the individual variances are equal. Find the price variance first, then the quantity variance