Dante’s Statue Company produces lawn statues. The standard cost of producing one statue is:

Material (2.5 pounds x $2.80) ..........$ 7.00

Labor (.75 hours x $12) ........... 9.00

Overhead .................. 10.00

Total ................... $26.00

Standard variable overhead is $6.20 per unit, and fixed annual overhead is $95,000.At the start of 2012, expected production was 25,000 units. During 2012, 27,000 statues were produced.

The following information, related to actual costs incurred in 2012, is available:

1. Purchased 70,000 pounds of material for $182,000.

2. Used 68,200 pounds of material.

3. Worked 19,600 labor hours costing $254,800.

4. Actual overhead incurred was $260,000.

Required

a. Show the calculation of the standard overhead rate per unit of $10.

b. Calculate all material, labor, and overhead variances.

c. Prepare a variance summary, and briefly comment on variances that should be investigated.