Materials, labor, and overhead variances—two-variance method; Review of Chapter 7 LO_4,5 Hardy 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:

Required:
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 (25,677 hours at $3.65 per hour) Actual variable overhead Actual fixed overhead..... $ 15.482.34 108,321.05 67,080.00 60,500.00