The Pierless Paint Company produces an exterior house paint known as Pierpont 163. Two direct materials are combined in the manufacture of this paint: pier and pont. Pierpont 163 is sold in |-gallon cans, the standard costs of which are shown here:

Standard cost per gallon: Pierpont 163 Materialtpiert..cccsceee oe eee 0.8 gallons @ $4.00 per gallon ...cccccccsssssessssssseeeeeees $3.20 Materialiponteie 8h. coves oe Seiten ae 0.4 pounds @ $0.60 per pound ...cccscccccsssssscccrssseeees wa Direct labor secede cent erect eee « 0.01 hours @ $10.00 per hour ...ccccscccssssessccessseeeeses 10 Vantable Qverhieadss.c.cticcicis) dtednicactsvaullasieeatse 0.01 direct labor hours @ $8.00 per hour’.......... .08 Eixed Overhead: ns cscstr ct anne eins 0.01 direct labor hours @ $22.00 per hour’........ weZZ, Total standard cost per gallon $3.84

“Overhead rates were computed at normal activity of 2,000 standard direct labor hours per month.

Inventory records last month show:

Beginning ‘Ending Item Inventory Purchases Inventory Ss ot eet cele 2) talinen ety ets ene TS 6S) yt BO Material pier 80,000 gallons 126,000 gallons 30,000 gallons

@ $3.80 per gallon Material pont 35,000 pounds 135,000 pounds 90,000 pounds

@ $0.62 per pound Additional production information from last month:

Callons(oG Pier pontel|63 produced:...... fni.32 yee ee 212,000 gallons Actual direct labor cost (2,180 direct labor hours @ $9.70 per hour):..... $21,146 Aewiabioverhead costs: tte ee a ee ee $63,575 Required: Compute the following variances:

(1) Direct materials price and quantity variances for

(a) material pier and

(b) material pont

(2) Direct labor price and efficiency variances

(3) Overhead budget variance

(4) Fixed overhead volume variance

 TKY-1