Reference no: EM132590827

Inman Corporation manufactures a single product. The standard cost per unit of product is as follows:

Direct materials-2 kg of plastic at $5.50 per kilogram$11.00

Direct labour-2 hours at $11.35 per hour22.70

Variable manufacturing overhead9.80

Fixed manufacturing overhead5.30

Total standard cost per unit$48.80

The master manufacturing overhead budget for the month based on the normal productive capacity of 20,800 direct labour hours (10,400 units) shows total variable costs of $104,000 ($5 per labour hour) and total fixed costs of $83,200 ($4 per labour hour). Normal production capacity is 20,800 direct hours.

Overhead is applied based on direct labour hours. Actual costs for producing 10,140 units in November were as follows:

Direct materials (20,500 kg)$111,725

Direct labour (20,280 hours)234,234

Variable overhead101,920

Fixed overhead82,160

Total manufacturing costs$530,039

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

Question 1: Calculate all of the materials and labour variances. (Round intermediate calculations to 2 decimal places, e.g. 1.25 and final answers to 0 decimal places, e.g. 125.)

Question 2: Calculate the total overhead variance.

Question 3: Calculate the overhead budget variance and the overhead volume variance.