Browser Products operates a small plant in New Mexico that produces dog food in batches of 1,000 pounds.The product sells for $3.00 per pound.

Standard costs for 2015 are:

Standard direct labor cost = $ 15 per hour

Standard direct labor hours per batch = 8 hours

Standard cost of material A = $0.20 per pound.

Standard pounds of material A per batch = 800 pounds

Standard cost of material B = 0.40 per pound

Standard pounds of material B per batch = 200 pounds

Fixed overhead costs per batch = $ 400

At the start of 2015, the company estimated monthly production and sales of 40 batches.The company estimated that all overhead costs were fixed and amounted to $ 16,000 per month.

During the month of June 2015 (typically a somewhat slow month) 30 batches were produced (not an unusual level of production for this month).The following costs were incurred:

Direct labor costs were $4,800 for 300 hours

24,500 pounds of material A costing $ 4,655 were purchased and used.

5,900 pounds of material B costing $2,419 were purchased and used.

Fixed overhead of $ 15,500 were incurred.

Required:

a. Calculate variances of material, labor and overhead.

b. a summary of the variances. Does the unfavourable overhead volume variance suggest that overhead costs are out of control.