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

Direct materials (10 Ibs. @ $3 per Ib.). . . . . . . . . . . $30.00

Direct labor (4 hrs. @ $6 per hr.) . . . . . . . . . . . . . 24.00

Overhead (4 hrs. @ $2.50 per hr.) . . . . . . . . . . . . . 10.00

Total standard cost . . . . . . . . . . . . . . . . . . . . . . . . . $ 64.00

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 10,000 units per month. The following flexible budget information is available.

During May, the company operated at 90% of capacity and produced 9,000 units, incurring the following actual costs.

Required
1. Compute the direct materials 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 70% 80% Production in units.. . . Standard direct labor hours .....28.000 Budgeted overhead 8.000 9,000 32.000 36,000 ..7.000 Variable overhead costs Indirect materials.. Indirect labor.... Power...-..- $8,750 $10,000 $11.250 4,000 6.000 18.000 4,000 4,500 2.000 2,250 2,00036.000 3,500 Total variable costs .· Fixed overhead costs 28,000 20,000 16,000 18,000 $76,000 20,000 20,000 6.000 16,000 48,000 48,000 $80,000 $84,000 Supervisory salaries... Total overhead costs $271.400 227.480 Direct labor (37,600 hrs. @ $6.05 per hr) Overhead costs Indirect materials... Indirect labor . Power Maintenance Rent of factory building . $10,000 ..6,000 4,500 3,000 2,000 19.200 .. .* Supervisory salaries 17.000 81.700 $580,580 Total costs $271,400 227,480 Direct labor (37,600 hrs. @ $6.05 per hr.).. Overhead costs nsias... $10,000 4,500 3,000 2,000 Power . Rent of factory building... 17000 81,700 upervisory salaries .. . Total costs $580,580