1. Hurley, Inc. manufactures widgets for distribution. The standard costs for the manufacture of widgets follow: Standard Costs 3 lbs. per widget at $35 per pound Direct materials 8 10 11 12 Direct labor 13 2.5 hours per widget at $11 per hour 14 15 16 Factory overhead Variable cost, $24/widget 17 18 Fixed cost, $40/widget 19 20 Actual Costs 9,300 lbs. at $34 per pound 6,750 hours at $11.80 per hour $72,450 variable cost $114,375 fixed cost 21 Budgeted factory overhead was $192,000. Overhead applied is based on widgets produced. The 22 23 company estimated that 3,000 widgets would be produced; however, only 2,880 were produced. 24 Calculate the following variances. A. Materials Quantity Variance (MQV). B. Overhead Volume Variance (OHVV).