B & W Company developed the following standard costs for its product for 2020:

B & W COMPANY

Standard Cost Card

Cost Elements Standard Quantity Standard Price = Standard Cost

Direct materials 4 kilograms $ 10 $40

Direct labour 2 hours 20 40

Variable overhead 2 hours 7 14

Fixed overhead 2 hours 4 8

$102

The company expected to work at the 30,000 direct labour hours level of activity and produce 15,000 units of product.

Actual results for 2020 were as follows:

14,200 units of product were actually produced. Direct labour costs were $552,420 for 27,900 direct labour hours actually worked. Actual direct materials purchased and used during the year cost $543,320 for 57,800 kilograms. Total actual manufacturing overhead costs were $340,000. Required:

Calculate the following variances for B & W Company for 2020 and indicate whether the variance is favourable or unfavourable.

a. Direct materials price variance.

b. Direct labour quantity variance.

c. Overhead budget variance.

d. Overhead volume variance.