Arzu Inc. produces premium protective car covers. The direct materials and direct labour standards for one car cover are as follows:Arzu Inc. produces premium protective car covers. The direct materials and direct labour standards for one car cover are as follows:

Budgeted fixed overhead cost is $$17,600,$ and the normal production volume is $2,985$ car covers. Overhead is applied on the basis of

direct labour$-$hours.

In September, the following activity was recorded:

$14,000$ metres of cloth were purchased at a cost of $$11\mathrm{.}50$ per metre.

All of the purchased material was used to produce $2,800$ car covers.

$590$ direct labour$-$hours were recorded at a total labour cost of $$7,080.$

Actual variable overhead cost was $$5,700,$ and fixed overhead cost was $$17,000.$

Standard Quantity

or Hours Standard Price

or Rate Standard Cost

Direct materials $5\mathrm{.}00$ metres of cloth $ $11$ per metre $ $55\mathrm{.}00$

Direct labour $0\mathrm{.}20$ hours $ $12$ per hour $ $2\mathrm{.}40$

Variable overhead $0\mathrm{.}20$ hours $ $9$ per hour $ $1\mathrm{.}80$

Budgeted fixed overhead cost is $$17,600,$ and the normal production volume is $2,985$ car covers. Overhead is applied on the basis of direct labour$-$hours.

In September, the following activity was recorded:

$14,000$ metres of cloth were purchased at a cost of $$11\mathrm{.}50$ per metre.

All of the purchased material was used to produce $2,800$ car covers.

$590$ direct labour$-$hours were recorded at a total labour cost of $$7,080.$

Actual variable overhead cost was $$5,700,$ and fixed overhead cost was $$17,000.$

Required:

$1.$ Compute all direct materials variances for September. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$

$2.$ Compute all direct labour cost variances for September. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$

$3.$ Calculate the total under$-$ or overapplied overhead. Show all the variances calculated and indicate if each variance is favourable or unfavourable. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Do not round intermediate calculations and round "Fixed overhead volume variance and total variance" to $2$ decimal places.$)$