ABC Company produces and sells 1 product. Once the products are produced, they are sold, and there is no work-in-process, no any inventory in stock. Company uses standard costing method in its operations.

The following information was included into the Company's standard cost card for the product:

Direct materials = 2 kg at $1 per kg = 2$

Direct labor = 1.5 hours at $3 per hour = 4.5$

Variable overheads = 1.5 hours at 0.5$ per hour = 0.75$

Fixed overheads = 1.5 hours at $2.5 per hour = 3.75$

Standard cost = 11$

Standard profit = 5$

Standard selling price = 16$

For calculations of the Budget Company used 2,500 units of output.

For the last month actual results were as follows:

Production = 2,300 units. Sales = $35,650

Direct materials used in the production were equal to 4,900 kg at a cost of $7,840

Direct labor hours paid for were equal to 3,600 hours at a cost of $10,080

However, actual operating hours were equal to 3,300 hours

Variable overheads were equal to $2,000

Fixed overheads were equal to $9,000

Required (note: calculations are required and you should define whether variance is favorable or adverse):

1. Find materials price variance (3 points)
2. Find materials usage variance (3 points)
3. Find labor efficiency variance (3 points)
4. Find labor rate variance (3 points)
5. Find Idle time variance (3 points)
6. Find Variable overhead expenditure variance (3 points)
7. Find Variable overhead efficiency variance (3 points)
8. Find Fixed overhead expenditure variance (3 points)
9. Find fixed overhead volume variance (3 points)
10. Find sales volume variance (3 points)
11. Find selling price variance (3 points)
12. Find the total Sales variance (2 points)
13. Prepare the Operating statement for the last month for ABC Company (5 points)