(AlCPA adapted) Comprehensive variances in process costing Webb & Company is en- gaged in the preparation of income tax returns for individuals. Webb uses the weighted average method and actual costs for financial reporting purposes. However, for internal reporting, Webb uses a standard cost system based on weighted average equivalent performance. The standards have been established as follows:

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Labor per return Overhead per return 5 hrs. @ $20 per hr. 5 hrs. $10 per hr. For March 1992 performance, budgeted overhead is $49,000 for the standard labor hours allowed. The following additional information pertains to the month of March 1992: