Reference no: EM132810894

Question - Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials-1 pound plastic at $6.00 per pound $6.00 Direct labor-0.5 hours at $11.90 per hour 5.95 Variable manufacturing overhead 3.00 Fixed manufacturing overhead 5.00 Total standard cost per unit $19.95

The predetermined manufacturing overhead rate is $16.00 per direct labor hour ($8.00 ÷ 0.5). It was computed from a master manufacturing overhead budget based on normal production of 2,600 direct labor hours (5,200 units) for the month. The master budget showed total variable costs of $15,600 ($6.00 per hour) and total fixed overhead costs of $26,000 ($10.00 per hour). Actual costs for October in producing 3,000 units were as follows.

Direct materials (3,190 pounds) $19,459

Direct labor (1,390 hours) 17,097

Variable overhead 18,238

Fixed overhead 7,562

Total manufacturing costs $62,356

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

Required -

(a) Compute all of the materials and labor variances.

(b) Compute the total overhead variance.