Calculate variances. P12.52B (LO 2, 3) Excel Ranier Corporation manufactures a single product. The standard cost per unit of the product is shown below: Direct materials-1.5 kg of plastic at $8 per kilogram Direct labour-2 hours at $15 per hour Variable manufacturing overhead Fixed manufacturing overhead Total standard cost per unit Direct materials (10,200 $74,500 kg) The predetermined manufacturing overhead rate is $7.50 per direct labour hour ($15.00 = 2). This rate was calculated from a master manufacturing overhead budget based on normal production of 20,000 direct labour hours (10,000 units) for the month. The master budget showed total variable costs of $100,000 ($5.00 per hour) and total fixed costs of $50,000 ($2.50 per hour). Actual costs for October in producing 9,600 units were as follows: Direct labour (14,000 hours) Variable overhead Fixed overhead Total manufacturing costs 175,000 $12.00 112,500 37,500 $399,500 30.00 10.00 5.00 $57.00 The purchasing department normally buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories can therefore be ignored. Instructions a. Calculate all of the materials and labour variances. Material price variance $7,100 F, Labour quantity variance $78,000 F b. Calculate the total overhead variance. c. Calculate the overhead budget variance and the overhead volume variance.