Puray Corporation manufactures a product with the following standard costs:

Standards are based on normal monthly capacity of 2,400 direct labor hours. The following information pertains to July:

Required:
(1) Compute the variable factory overhead rate per direct labor hour and the total fixed factory overhead based on normal monthly capacity.
(2) Compute the following variances and indicate whether they are favorable or unfavorable:
(a) Materials purchase price and quantity variances
(b) Labor rate and efficiency variances
(c) Factory overhead controllable and volume variances

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Direct materials 20 yards at $1.35 per yard Factory overhead 4 direct labor hours at $7.50 per hour $27 36 ratio of variable to fixed factory overhead is 2:1 Total standard cost per unit of output 30 $93 Units produced in July Direct materials purchasedー18,000 yards at $1.38 per yard Direct materials used-9,500 yards Direct labor-2,100 hours at $9.15 per hour Actual factory overhead 500 $24,840 ,"" 19,215 16,650