Clemson Company prepares its budgets on the basis of standard costs. A responsibility report is prepared monthly showing the differences between master budget and actual results. Variances are analyzed and reported separately. There are no materials inventories.

The following information relates to the current period:

Standard costs (per unit of output)

Direct materials, 2 gallons @ $6.00 per gallon . . . . . . . . . . . $12

Direct labor, 4 hours @ $24 per hour . . . . . . . . . . . . . . . . . . . 96

Factory overhead

Variable (25% of direct labor cost) . . . . . . . . . . . . . . . . . . . . 24

Total standard cost per unit. . . . . . . . . . . . . . . . . . . . . . . . . $132

Actual costs and activities for the month follow:

Materials used. . . . . . . . . . . . . . 4,200 gallons at $5.40 per gallon

Output . . . . . . . . . . . . . . . . . . . . 1,900 units

Actual labor costs . . . . . . . . . . . 6,400 hours at $30 per hour

Actual variable overhead. . . . . . $54,000

Required

Prepare a cost variance analysis for the variable costs.