Manufacturing Variances: Hylab Company prepares its budgets on the basis of standard costs. A responsibility report is prepared monthly showing the differences between master budget and actual. Variances are analyzed and reported separately. Materials price variances are computed at the time of purchase. The following information relates to the current period:

Actual costs for the month:

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

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Standard costs (per unit of output): Direct materials, 1 kilogram @ $1 per kilogram Direct labor, 2 hours @ $4 per hour Factory overhead: Variable (25% of direct labor cost) Fixed (master budget 3,600 hours) Total standard cost per unit $ 1 8 2 1 (based on direct labor-hours) $12