Big City. (BC) produces a popular brand of hoodies which it sells to wholesalers at a price of $15. BC uses standard costing and has determined the following standard costs for a budgeted production level of 12,500 units:

Direct materials 2 metres @ $6 per metre

Direct Labour 0.25 hours @ $20 per DLH

Variable MOH 0.25 hours @ $10 per DLH

Fixed MOH 0.25 hours @ $12 per DLH

In the most recent month, a total of 11,500 units were produced and sold.

Additional information:

1. BC purchased 24,000 metres of direct materials during the month at a total cost of $138,000. It had 2,500 metres on hand at the beginning of the month, and it ended the month with 1,500 metres.
2. During the month, BC incurred 3050 direct labour hours at a total cost of $62,525.
3. The total manufacturing overhead during the month was $65,000, of which variable manufacturing overhead consisted of $32025.

Required:

a) Calculate the following variances and note them in the blanks. Do not include brackets in your response. Space has been provided below to show calculations, if desired. This is optional.

Labour rate Variance was $, (State F for favourable, U for unfavourable)

Labour efficiency Variance was $, (State F for favourable, U for unfavourable)

b) Calculate the following variances and note them in the blanks. Do not include brackets in your response. Space has been provided below to show calculations, if desired. This is optional.

Fixed overhead budget variance was $, (State F for favourable, U for unfavourable)

Fixed overhead volume variance was $, (State F for favourable, U for unfavourable)

Also prepare the journal entry(entries) necessary to record the variances calculated above.