Reference no: EM13586357

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below. Direct materials 2 pound plastic at $7.37 per pound $ 14.74 Direct labor 2.00 hours at $12.00 per hour 24.00 Variable manufacturing overhead 14.00 Fixed manufacturing overhead 10.00 Total standard cost per unit $62.74 The predetermined manufacturing overhead rate is $12 per direct labor hour ($24.00/ 2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,800 direct labor hours (5,900 units) for the month. The master budget showed total variable costs of $82,600 ($7.00 per hour) and total fixed overhead costs of $59,000 ($5.00 per hour). Actual costs for October in producing 3,400 units were as follows. Direct materials (6,940 pounds) $ 52,189 Direct labor (6,670 hours) 82,108 Variable overhead 62,259 Fixed overhead 21,161 Total manufacturing costs $217,717 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.

(a) Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

Total materials variance

$ Materials price variance

$ Materials quantity variance

$ Total labor variance

$ Labor price variance

$ Labor quantity variance

$ (b) Compute the total overhead variance.

Total overhead variance