1 ) calculate the direct material variance (price volumes/ quantity 2) calculate direct labour variance (rate and efficiency)3) calculate the total overhead cost 4) determined whether fine way met its price and quantity objective for material , labour, and overhead For the variance calculate you should indicate if it's favourable (f) or unfavourable (u)

Heade Assume that during the past month. Fineway produced 10,000 cartons of highlighters. Highlighters has a translucent barrel and cap with a visible ink supply for see through colour. The special fluorescent ink is fade and water resistance. Each carton contains 100 boxes of markers and each box contains five markers. The markers come in boxes of one of five fluorescent colours- orange, blue, yellow, green and pink and in a five colour set. The standard cost for one carton of 500 markers is as follows: Standard Manufacturing Cost Elements Quantity Price Cost Direct materials Tips (boxes of 500 500 X 50.03 = $15.00 Translucent barrels and caps (boxes of 500 500 X 50.09 = $45.00 Fluorescent Ink (5 litre container) Slitre X $6.40 $32.00 Total direct material = $92.00 Direct labour 0.25 hours X $9.00 = $2.25 Overhead 0.25 hours X $48.00 : $12.00 Total cost of production - $106.25