25-3A

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017,10,600suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was15,000direct labor hours. All materials purchased were used.

Cost Element

Standard (per unit)

Actual

Direct materials8yards at $4.10per yard$332670for85,300yards ($3.90per yardDirect labor120hours at $13.00per hour$179816for13,520hours ($13.30per hourOverhead1.20hours at $6.50per hour (fixed $4.00; variable $2.50)$48,300fixed overhead $36,500variable overhead

Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $60,000, and budgeted variable overhead was $37,500.

(a)

Compute the total, price, and quantity variances for (1) materials and (2) labor.Round answers to 0 decimal places, e.g. 125.)

(Total materials variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Materials price variance$

Neither favorable nor unfavorable

Unfavorable

Favorable

Materials quantity variance$

Neither favorable nor unfavorable

Unfavorable

Favorable

(Total labor variance$

Favorable

Neither favorable nor unfavorable

Unfavorable

Labor price variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Labor quantity variance$

Unfavorable

Neither favorable nor unfavorable

Favorable

(b)

Compute the total overhead variance.

Total overhead variance$

Unfavorable

Favorable

Neither favorable nor unfavorable