(Conversion cost variances) The May budget for Mia Hamm Mfg. shows $1,080,000 of variable conversion costs, $360,000 of fixed conversion costs, and 72,000 machine hours for the production of 24,000 units of product. During May, 76,000 machine hours were worked and 24,000 units were pro¬ duced. Variance and fixed conversion costs for the month were $1,128,800 and $374,500, respectively.

a. Calculate the four conversion cost variances assuming that variable and fixed costs are separated.

b. Calculate the three conversion cost variances assuming that fixed and variable costs are combined.

LO.1