Cartier Co manufactures wooden toy vehicles. The company operates a standard costing

system and values inventory at standard cost.

The following is an extract of a partly completed spreadsheet for calculating variances in Dec

2021.

Standard Cost Card - Toy Vehicle $ per vehicle

Selling price 250

Direct material 5 kgs per unit @ $7 35

Direct labour 6 hours @ $12 per hour 72

Total production overhead

Variable production ovorhead 6 hours @ $5 per DLH 30

Fixed production overhead 6 hours @ $3 per DLH 18

Actual and budgeted activity levels in units

Budget Actual

Sales 25,000 25,600

Production 25,000 26,000

Actual sales revenue and variables costs $

Sales 6,266,880

Direct material purchased (150,000 kgs) 1,125,000

Direct labour (150,000 hours) 1,920,000

Variable production overhead 832,000

Fixed production overhead 440,000

Additional information:

Annual budgeted production capacity 300,000 units

The standard production overhead costs per unit is based on direct labour hours.

Based on capacity of 200,000 direct labour hours per month.

Direct material used 128,000 kgs

Required:

(a)

Calculate the following variances for Dec 2021 and state whether it is favourable or

unfavourable:

i)

Total direct material variances

ii)

Total direct labour variances

iii)

Total variable overhead variances

iv)

Total fixed overhead variances