Guadelupe Company has set the following standard costs per unit for the product it manufactures

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 10,000 units per month. The following flexible budget information is available.

During March, the company operated at 90% of capacity and produced 9,000 units, incurring the following actual costs.

Required 1. Compute the direct materials cost variance, including its price and quantity variances.
2. Compute the direct labor variance, including its rate and efficiency variances.
3. Compute these variances:

(a) variable overhead spending and efficiency,

(b) fixed overhead spending and volume, and

(c) total overhead controllable.
4. Prepare a detailed overhead variance report (as in Exhibit 23.15) that shows the variances for indi¬ vidual items of overhead.

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Direct materials (10 lbs. @ $3.00 per lb.). Direct labor (4 hr. @ $6 per hr.). Overhead (4 hr. @ $2.50 per hr.) Total standard cost $30.00 24.00 10.00 $64.00