Comprehensive Variance Problem: Indianapolis Company manufactures two products. Florimene and Glyoxide, used in the plastics industry. The company prepares its master budget on the basis of standard costs. The following data are for the month of August.

Required:

a. Prepare a comprehensive cost variance analysis like the one in Illustration 19-10.

b. Prepare a fixed overhead variance analysis like the one in Illustration 19-12.

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Standards: Direct materials Direct labor Variable overhead (per direct labor-hour) Fixed overhead (per month) Expected activity (direct labor-hours) Actual data: Direct material Florimene 3 kilograms at $1 per kilogram 5 hours at $4 per hour $3.20 $22,356 5,750 Glyoxide 4 kilograms at $1.10 per kilogram 6 hours at $5 per hour $3.50 $26,520 7,800 Direct labor Variable overhead Fixed overhead Units produced (actual) 3,100 kilograms at $.90 per kilogram 4,900 hours at $4.05 per hour $16,170 20,930 1,000 units 4,700 kilograms at $1.15 per kilogram 7,400 hours at $5.10 per hour $25,234 26,400 1,200 units