B E 1 2 3 4 5 A Materials price variance calculation: Actual price per unit Standard price per hour Difference 6 7 Actual quantity purchased Materials price variance 00 9 10 11 12 B Materials quantity (usage) variance calculation: Actual quantity used Standard quantity (for actual output level) Difference 13 14 15 16 Standard price Materials quantity (usage) variance 1 17 18 19 20 C Labor price (rate) variance calculation: Actual rate per hour Standard rate per hour Difference 21 22 23 24 25 26 X Actual number of hours Labor price (rate) variance 27 28 B D 29 30 31 A D Labor quantity (efficiency) variance calculation: Actual quantity of hours Standard quantity of hours Difference 32 33 34 35 Standard rate per hour Labor quantity (efficiency) variance 36 37 38 39 E calculation of overhead budget variance: Actual variable overhead Actual fixed overhead Total actual overhead 40 41 42 43 44 45 46 47 Budgeted variable overhead Budgeted fixed overhead Total budgeted overhead Overhead budget variance 48 49 6 F Calculation of overhead volume variance: Budgeted variable overhead Budgeted fixed overhead Total budgeted overhead 50 51 52 53 54 55 56 57 58 59 Applied variable overhead Applied fixed overhead Total applied overhead Overhead volume variance Here is the problem: Based on a standard volume of output of 96,000 units per month, the standard cost of the product manufactured by Sahoe Company consists of: $2.05 Direct materials (0.25 pounds x $8.20 per pound) Direct labor (0.5 hours x $7.50 per hour Variable manufacturing overhead Fixed manufacturing overhead Total $3.75 $2.50 $1.50 $9.80 A total of 25,200 pound of materials was purchased at $8.30 per pound. During July. 98,400 units were produced with the following costs: Direct materials used (24,000 pounds at $8.30) Direct labor (50,000 hours at $7.90) Variable manufacturing overhead Fixed manufacturing overhead $199,200 $395,000 $249,000 $145,000 Required: A. Compute the materials price variance for July. B. Compute the materiais quantity (usage) variance for July. C. Compute the labor price (rate) variance for July. D. Compute the labor quantity (efficiency) variance for July. E. Compute the overhead budget variance for July. F. Compute the overhead volume variance for July