a$.$ The company manufactured $25,000$ units during the year.

b$.$ A total of $72,000$ feet of material was purchased during the year at a cost of $$2\mathrm{.}10$ per foot. All of this material was used to

manufacture the $25,000$ units produced. There were no beginning or ending inventories.

c$.$ The company worked $30,000$ direct labor$-$hours at a direct labor cost of $$12\mathrm{.}70$ per hour.

d$.$ Overhead is applied to products based on standard direct labor$-$hours. Data relating to manufacturing overhead costs follow:

Required:

Compute the materials price and quantity variances.

Compute the labor rate and efficiency variances.

For manufacturing overhead compute:

a$.$ The variable overhead rate and efficiency variances.

b$.$ The fixed overhead budget and volume variances.rrodIem IUA$-$IU $($AIgO$)$ Comprenensive Stanaara CoSt variances $[$LU$-$IU$-$I, LUIU$-$L$,$ LU$/$IU$-5,$ LUIU$-4]|$requirea:

Compute the materials price and quantity variances.

Compute the labor rate and efficiency variances.

For manufacturing overhead compute:

a$.$ The variable overhead rate and efficiency variances.

b$.$ The fixed overhead budget and volume variances.

Note: For all requirements, indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for

no effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive values.

"Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good

job in controlling costs as well," said Kim Clark, president of Martell Company. "Our $$27,650$ overall manufacturing cost variance is only

$2\mathrm{.}0\%$ of the $$1,382,500$ standard cost of products made during the year. That's well within the $3\%$ parameter set by management for

acceptable variances. It looks like everyone will be in line for a bonus this year."

The company produces and sells a single product with a standard cost card as follows:

The following additional information is available for the year just completed: