1. Loper Corporation manufactures a single product. The standard cost per unit of product is shown below: Direct materials -- 2 pound at $5 per pound $ 10.00 Direct labor -- 2 hours at $12 per hour 24.00 Variable manufacturing overhead 12.00 Fixed manufacturing overhead 6.00 Total standard cost per unit $52.00 The predetermined manufacturing overhead rate is $9 per direct labor hour ($18/2). It was computed from a master manufacturing overhead budget based on normal production of 15,000 direct labor hours (7,500 units) for the month. The master budget showed total variable costs of $90,000 ($6 per hour) and total fixed overhead costs of $45,000 ($3 per hour). Overhead is applied on the basis of direct labor hours. Actual costs for October in producing 7,400 units were as follows: Direct materials (15,000 pounds) $ 73,500 Direct labor (14,900 hours) 181,780 Variable overhead 88,990 Fixed overhead 44,000 Total manufacturing costs $388,270 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Instructions: Compute all of the materials, labor and overhead variances. Your answer should include the material price variance, material quantity variance, labor price variance, labor quantity variance and total overhead variance. Clearly label your answers (abbreviations are fine) and show all calculations. 1. Loper Corporation manufactures a single product. The standard cost per unit of product is shown below: Direct materials -- 2 pound at $5 per pound Direct labor -- 2 hours at $12 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $ 10.00 24.00 12.00 6.00 $52.00 The predetermined manufacturing overhead rate is $9 per direct labor hour ($18/2). It was computed from a master manufacturing overhead budget based on normal production of 15,000 direct labor hours (7,500 units) for the month. The master budget showed total variable costs of $90,000 ($6 per hour) and total fixed overhead costs of $45,000 ($3 per hour). Overhead is applied on the basis of direct labor hours. Actual costs for October in producing 7,400 units were as follows: Direct materials (15,000 pounds) Direct labor (14,900 hours) Variable overhead Fixed overhead Total manufacturing costs $ 73,500 181,780 88,990 44,000 $388,270 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Instructions: Compute all of the materials, labor and overhead variances. Your answer should include the material price variance, material quantity variance, labor price variance, labor quantity variance and total overhead variance. Clearly label your answers (abbreviations are fine) and show all calculations. 1. Loper Corporation manufactures a single product. The standard cost per unit of product is shown below: Direct materials -- 2 pound at $5 per pound Direct labor -- 2 hours at $12 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit $ 10.00 24.00 12.00 6.00 $52.00 The predetermined manufacturing overhead rate is $9 per direct labor hour ($18/2). It was computed from a master manufacturing overhead budget based on normal production of 15,000 direct labor hours (7,500 units) for the month. The master budget showed total variable costs of $90,000 ($6 per hour) and total fixed overhead costs of $45,000 ($3 per hour). Overhead is applied on the basis of direct labor hours. Actual costs for October in producing 7,400 units were as follows: Direct materials (15,000 pounds) Direct labor (14,900 hours) Variable overhead Fixed overhead Total manufacturing costs $ 73,500 181,780 88,990 44,000 $388,270 The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored. Instructions: Compute all of the materials, labor and overhead variances. Your answer should include the material price variance, material quantity variance, labor price variance, labor quantity variance and total overhead variance. Clearly label your answers (abbreviations are fine) and show all calculations