Materials, labor, and overhead variances-two-variance method Calgary Company manufactures products in batches of 100 units per batch. The company uses a standard cost system and prepares budgets that call for 500 of these batches per period. Fixed overhead is \(\$ 60,000\) per period. The standard costs per batch follow:

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Calculate the variances for materials, labor, and overhead. For overhead, use the two-variance method.

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Material (80 gallons) Labor (60 hours). Factory overhead Standard cost per batch. $ 32 216 252 $500 During the period, 503 batches were manufactured and the following costs were incurred: Materials used (40,743 gallons) Labor (29,677 hrs. @ $3.65/hr.) Actual variable overhead Actual fixed overhead ... $15,482.34 108,321.05 67,080.00 60,500.00