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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: Direct

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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: Direct materials (0.25 pounds x $2.05 $8.20 per pound) Direct labor (0.5 hours x $7.50 per $3.75 hour Variable manufacturing $2.50 overhead Fixed manufacturing $1.50 overhead Total $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 $199,200 pounds at $8.30) Direct labor |(50,000 hours at $395,000 $7.90) Variable manufacturing $249,000 overhead Fixed manufacturing $145,000 overhead A. Compute the materials price variance for July. B. Compute the materials 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. A Materials price variance calculation Actual price per unit Standard price per hour Difference Actual quantity purchased Materials price variance B Materials quantity (usage) variance calculation: Actual quantity used Standard quantity (for actual output level) Difference Standard price Materials quantity (usage variance C Labor price rate) variance calculation Actual rate per hour Standard rate per hour Difference Actual number of hours Labor price rate) variance D Laber quantity efficiency) anance calculation Actualquantity of hours Standard quantity of hours Difference Standard rate per hour Labor quantity efficiency) variance E Calculation of overhead budget a nce: Actual variable overhead Actual fixed overhead Total actual overhead Budgeted variable overhead Budgeted fixed overhead Total budgeted overhead Overhead budget variance F Calculation of overhead volume variance Budgeted variable overhead Budgeted fixed overhead Total budgeted overhead Applied variable overhead Applied fined overhead Total applied overhead Overhead volume variance

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