Clemson Company prepares its budgets on the basis of standard costs. A responsibility report is prepared monthly showing the differences between master budget and actual results. Variances are analyzed and reported separately. There are no materials inventories.

The following information relates to the current period:

Required Prepare a cost variance analysis for the variable costs.

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Standard costs (per unit of output) Direct materials, 4 gallons @ $1.50 per gallon Direct labor, 8 hours @ $6 per hour. Factory overhead Variable (25% of direct labor cost) Total standard cost per unit $ 6 48 $66 1.50 X 12800 1.50819000 Actual costs and activities for the month follow: Materials used Output Actual labor costs Actual variable overhead 8,400 gallons at $1.35 per gallon 1,900 units 12.800 hours at $7.50 per hour $27,000