Carlsbad Company has set the following standard costs per unit for the product it manufactures.

Direct materials (40 oz. @ $0.75 per oz.) . . . . . . . . $ 30.00

Direct labor (2 hr. @ $20 per hr.) . . . . . . . . . . . . . 40.00

Overhead (2 hr. @ $53.50 per hr.) . . . . . . . . . . . . 107.00

Total standard cost . . . . . . . . . . . . . . . . . . . . . . . . . $177.00

The predetermined overhead rate is based on a planned operating volume of 60% of the productive capacity of 3,000 units per month. The following flexible budget information is available.

During March, the company operated at 70% of capacity and produced 2,100 units, incurring the following actual costs.

Required
1. Compute the direct materials cost variance, including its price and quantity variances.
2. Compute the direct labor variance, including its rate and efficiency variances.
3. Compute these variances:
(a) Variable overhead spending and efficiency,
(b) Fixed overhead spending and volume, and
(c) Total overhead controllable.
4. Prepare a detailed overhead variance report that shows the variances for individual items ofoverhead.

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Operating Levels 60% 70% し800 3.600 2,100 Production in units Standard direct labor hours Budgeted overhead 1,500 Variable overhead costs Indirect materials . Indirect labor. Fower..L^.--... Maintenance Total variable costs.. 18,000$21,600 $25,200 0,500 2,600 4,700 9,000 0,500 6,300 56,700 7,500 4,500 40,500 5.400 48,600 56 Fixed overhead costs Rent of factory building ...48,000 48,000 48,000 Depreciation-machinery.. 44.000 44,000 44.000 Taxes and insurance Supervisory salaries . 32.000 32,000 32,000 Total fixed costs.. 20,000 20,000 20,000 144.000 $184.500 $192,600 $200,700 Total overhead costs Direct materials (88000 oz. @ $0.70 per oz) Direct labor (4,000 hrs. $19.50 per hr) Overhead costs $ 61.600 78,000 $23.600 ...14.800 Indirect labor... Maintenance. Rent of factory building Depreciation machinery . . 3,200 48,000 44,000 Supervisory salaries. Total costs 31.600 199,200 $338,800