Apollo Sports manufacturers fabric tents. The poles are purchased from a vendor, so the only part manufactured is the actual fabric tent. The company uses a standard cost system based on manufacturing 5,000 tents per month. Overhead is applied on a per-unit basis. In May, 4,840 tents were produced. Management has a policy that all variances greater than 3% from standard should be investigated. Standard and actual costs are listed below:

	Standard	Actual
Direct material	18 yards at $3.20 per yard	86,550 yards at $3.25 per yard
Direct labor	6.5 hours at $16.00 per hour	32,100 hours at $15.80 per hour
Overhead applied	$12.00 per tent
Actual overhead		$56,750

Instructions

Compute the total, price, and quantity variances for materials. State if each variance is favorable or unfavorable.

Total materials variance
(act qty act price)		(std qty std price)	=	Variance	F/UF
Amount		Amount	=	Amount	Favorable or Unfavorable?

Materials price variance
(act qty act price)		(act qty std price)	=	Variance	F/UF
Amount		Amount	=	Amount	Favorable or Unfavorable?

Materials quantity variance
(act qty std price)		(std qty std price)	=	Variance	F/UF
Amount		Amount	=	Amount	Favorable or Unfavorable?