The purchasing department buys the quantities of raw

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Reference no: EM13588823

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials-2 pound plastic at $6.08 per pound		$ 12.16
Direct labor-1.50 hours at $11.00 per hour		16.50
Variable manufacturing overhead		11.25
Fixed manufacturing overhead		12.75
Total standard cost per unit		$52.66

The predetermined manufacturing overhead rate is $16 per direct labor hour ($24.00 ÷ 1.50). It was computed from a master manufacturing overhead budget based on normal production of 8,700 direct labor hours (5,800 units) for the month. The master budget showed total variable costs of $65,250 ($7.50 per hour) and total fixed overhead costs of $73,950 ($8.50 per hour). Actual costs for October in producing 3,700 units were as follows.

Direct materials (7,580 pounds)		$ 48,057
Direct labor (5,420 hours)		60,975
Variable overhead		62,691
Fixed overhead		28,339
Total manufacturing costs		$200,062

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.)

Reference no: EM13588823

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