Soriano Manufacturing Company uses a standard cost accounting system to account for the manufacturing of exhaust fans. In July 2016, it accumulates the following data for 1,500 units started and finished:

Manufacturing overhead was applied based on direct labour hours. Normal capacity for the month was 3,400 direct labour hours. At normal capacity, budgeted overhead costs were $20 per labour hour variable and $10.00 per labour hour fixed. Total budgeted fixed overhead costs were $34,000.
Jobs finished during the month were sold for $280,000. Selling and administrative expenses were $25,000.
Instructions
(a) Calculate all of the variances for direct materials and direct labour.
(b) Calculate the total manufacturing overhead variance.
(c) Calculate the overhead budget variance and the overhead volume variance.
(d) Prepare an income statement for management showing the variances. Ignore income taxes.

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Actual Standard Cost and Production Data Raw materials Units purchased Units used Unit cost 21,000 21,000 $ 3.40 22,000 $3.00 Direct labour Hours worked Hourly rate 3,450 $ 11.80 3,600 $ 12.50 Manufacturing overhead Incurred $101,500 Applied $108,000