The following labour and variable overhead standards have been established for a particular product:

Please note that variable overhead is applied on the basis of direct labour hours

DIRECT LABOUR

Standard labour hours per unit of output	8.3 hours
Standard labour rate	$12.15 per hour
Variable Overhead rate	$5.25 per DLH

The following data pertain to operations concerning the product for the last month:

Actual hours worked	6,100 hours
Actual total labour cost	$71,370
Actual output	900 units
MOH -VC Actual: $4.80 per DLH Actual Variable OH Cost: $29,280 Actual Fixed OH: $15,250 Budgeted Fixed OH: $12,500 Applied Fixed OH:$13,750

a)What were the labour variances for the month? Clearly indicate whether they were Favourable (F), or, Unfavourable (U)

Input: DL Output: 900 units

STD: 8.3 hrs at $12.15 per hr

AH x AR AH x SR SH x SR

b) What were the Variable Overhead variances for the month? Clearly indicate whether they were Favourable (F), or, Unfavourable (U)

Input: MOH - VC Output:

STD:

AH x AR AH x SR SH x SR

Fixed OH:

Actual Budget Applied